Justice Nagamohan Das Committee report, submitted to the Karnataka government on 13 March, said it found no evidence of a systematic 40 percent commission structure but said there was ‘some truth’ to allegations of commission and corruption.
Published Apr 03, 2025 | 8:50 AM ⚊ Updated Apr 03, 2025 | 8:50 AM
PayCM posters pasted by the Congress across Bengaluru.
Synopsis: The Justice Nagamohan Das Committee has found no clear evidence of a systematic 40% commission in public works contracts under the previous BJP government. However, the panel has named two former BJP MLAs and a senior public works engineer in connection with specific allegations.
An inquiry commission in Karnataka into the high-profile ‘40 percent commission’ corruption allegations – claims that significantly dented the image of the Bharatiya Janata Party (BJP) ahead of its electoral defeat two years ago – has found no conclusive evidence of systematic kickbacks, according to a Deccan Herald exclusive report.
The report of the Justice Nagamohan Das Committee, submitted to the Karnataka government on 13 March and independently reviewed by South First, does however name two former BJP Members of the Legislative Assembly (MLAs) – G H Thippareddy and Roopali Naik – and a senior Public Works Department (PWD) engineer, S F Patil, citing individual allegations and supporting evidence of corruption.
According to the committee, the Karnataka State Contractors Association (KSCA), which first brought the allegations to light, failed to substantiate its claim that officials demanded 40 percent commission on public works projects during the BJP’s tenure.
The KSCA had alleged that contractors were compelled to pay as much as 40 percent in bribes to receive payments for public projects. These allegations were made a central part of the Indian National Congress’s (Congress) campaign narrative during the state elections, when it was in opposition.
Following its victory in the 2023 Assembly elections, the Congress government constituted an inquiry panel headed by retired Justice Nagamohan Das to probe the issue.
The inquiry focused on complaints filed by contractors who reported direct harassment and demands for commission from elected representatives and officials. The committee’s findings draw from sworn testimonies, documents, audio recordings, and photographs submitted as evidence.
Contractor Manjunath bin Rudraiah appeared before the committee on 5 July 2024, submitting a sworn statement along with a pen drive containing recorded conversations and related documents.
“I was a civil contractor. In 2023, my family and I started Chinmuladri Construction Private Limited under which we took civil contract works. I am working as a contractor for the past 20 years and in these 20 years I have taken up various contract works including Minor Irrigation projects, Projects in Zilla Panchayat, Public Works Department, Chitradurga City Development Corporation, Health and Family Welfare Department, and a few other departments.”
Between 2019 and 2023, Thippareddy served as the MLA for Chitradurga. Manjunath told the commission:
“5 to 7 percent commission for building contract works, 15 to 20 percent for road contract works, and 20 to 25 percent commission for Minor Irrigation works on the overall estimates… I denied to give 5 to 7 percent commission. MLA Thippareddy did not cooperate with me to start this contract work. Therefore, I had to deliver Rs 10 lakhs to Thippareddy’s house myself, only then I was allowed to carry out the contract work.”
In a separate project under the Health and Family Welfare Department, Manjunath claimed he paid Rs 25 lakh in commission initially, followed by another Rs 90 lakh “at various stages phase by phase.”
“I became a victim for raising my voice against this percentage commission issue,” he added. “The UGD connection was purposefully [cut] for the home that I was constructing… The road construction in front of my home… was also halted.”
The commission noted delays in tender approvals and work order processing during Thippareddy’s tenure. It concluded that Manjunath’s documentary and audio evidence supported his claims of coercive commission demands.
Another contractor, Mallangouda Sankagouda Shani, told the panel that PWD Chief Engineer S F Patil withheld payments when he refused to pay a 10–15 percent commission on contracts worth Rs 3 crore in Dharwad, Rs 8 crore in Kundgol, and Rs 8 crore in Hubballi.
“I have not been paid full amount for the bills of the above contract work for denying to pay commission… The government has to pay Rs 32 crores for various concrete roads and flyover contract works. However, none of the money has been paid to me.”
Separately, Madhav Babu Nayak, another contractor, testified that former Karwar MLA Roopali Naik demanded a commission before permitting the Guddali Puja (ceremonial breaking ground) of contract works in her constituency.
“The MLA along with her associates demanded 5 to 10 percent commission on the overall estimates of the contract work to do guddalli puja.”
Justice Nagamohan Das recommended a detailed investigation and legal action in this case.
Despite these individual cases, the commission said it found no evidence of a systematic 40 percent commission structure.
“The allegation of 40 percent commissions is not 100 percent true,” the panel stated. “The Contractors Association… might have not been successful in proving these allegations. One of the reasons in failing to prove these allegations might be the fear among contractors of becoming a scapegoat and a victim in the future.”
The report did, however, highlight widespread irregularities.
“Upon investigating the complaints filed by common people and contractors on 40 percent commission, there have been delays and lapses before calling tender notifications and also processing them,” it said. “But ministers and officials demanding as high as 40 percent commission on contract work was not forthcoming.”
The commission also referenced the 2022 suicides of contractors Santosh Patil and Sachin Panchal, both of whom left behind notes alleging corruption. Patil, in particular, named then-Rural Development Minister K S Eshwarappa as having demanded a 40 percent cut for a road project.
However, it noted that no formal complaints or corroborating evidence had been received in connection with these deaths.
“These two incidents vastly showcase the corruption that exists in allocating contract works to contractors,” the panel observed. “It also shows that the corruption in allotting contract work is not limited to a single political party or a particular government.”
It called for greater public vigilance against corruption, noting that the silence of ordinary citizens had allowed impunity to thrive.
“We have become silent spectators and failed to punish the wrongdoers in this corrupt system,” the report concluded.
(Edited by Dese Gowda)
