The Karnataka government has issued a notification ordering the formation of an inquiry commission to probe the "40 per cent commission" allegation when the BJP was in power.
The government’s earlier order appointing a one-man committee headed by retired High Court Justice H N Nagamohan Das to investigate the allegation stands annulled.
Justice Das, however, will head the inquiry commission.
The government decided to form a commission instead of a committee in order to give more teeth to the investigation into the "40 per cent commission" allegation that rocked the Karnataka politics and became a key poll plank for the Congress to wrest power.
The commission has been constituted under the Commissions of Inquiry Act whereas the previous committee was formed by way of an executive order of the government.
The government expects the commission to submit its report in three months. Earlier, the government had fixed a 30-day deadline for the committee to conclude its investigation.
The probe will cover five work-heavy departments - Public Works, Urban Development, Water Resources, Minor Irrigation & Rural Development, and Panchayat Raj.
The primary mandate of the one-man commission is to look into the allegations levelled by the Karnataka State Contractors Association.
In its July 2021 letter to Prime Minister Narendra Modi, the Association had claimed that contractors pay a 25-30 per cetnt cut before the start of civil works and 5-6 per cent for post-work bills. They also complained that a “package system” (bundling up of multiple works) favoured contractors from outside Karnataka.
The commission will also investigate any lapses in the tender processes.