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The Hindu
The Hindu
National
The Hindu Bureau

Allegation of ‘40% commission’: Karnataka High Court stays proceedings till government explains why enquiry was not completed within 30 days

The High Court of Karnataka has stayed further proceedings before a one-man commission of enquiry, which is probing the allegation of “40% commission” in the award of contracts under the previous BJP government, till the State government explains why the enquiry was not completed within one month as was notified.

Justice M. Nagaprasanna passed the interim order on December 7 on the petition filed by M/s Nikshep Infra Projects and 43 other firms and individual contractors.

The petitioner contractors have challenged the government’s August 5, 2023, notification of setting up the special investigation cell to examine the allegation of “40% commission” in the contracts of civil works awarded from 2019-20 to 2022-23. The government had set up the commission of enquiry headed by H.N. Nagamohan Das, a retired judge of the High Court.

Completion certificate

It was argued on behalf of the petitioners that the change in government had led to the scrutiny of all the works that have taken place earlier and to which works, the completion certificates are already issued by the competent authorities. The petitioner contractors have also complained about the hardship faced by them due to non-payment of the amount due to them despite the grant of the completion certificate, which certifies satisfaction with the works carried out.

The petitioners have also informed the court that a special investigating cell was set up on August 5 with a specific direction to conclude the enquiry in 30 days and a report be submitted. However, even after four months of the setting up of the special cell, nothing has happened except the constitution of a one-man enquiry commission under the provisions of the Commissions of Enquiry Act, 1952, on August 25, 2023.

On noticing the non-completion of the enquiry within one month, the court said that there would be an interim order of stay for further proceedings of the enquiry commission until the Government explained why the enquiry was not completed within one year.

The court has adjourned further hearing of the petition till December 19.

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