Smart power meter tender scam allegation: HC stays special court order seeking lokayukta report
Bengaluru: The Karnataka High Court on Wednesday granted an interim stay on a Special Court’s directive asking the Lokayukta Police to submit a report in connection with a private complaint filed against Energy Minister K.J. George and others, alleging irregularities in the tender process for smart electricity meters in the state.
The complaint, filed by BJP leaders including MLAs Dr. C.N. Ashwath Narayan, S.R. Vishwanath, and Dheeraj Muniraju, accused the state government of unlawfully awarding a ₹16,000 crore smart meter installation contract. They claimed the tender process violated transparency norms under the Karnataka Transparency in Public Procurement (KTPP) Act and the Karnataka Electricity Regulatory Commission (KERC) rules.
Justice M.I. Arun, heading a single-judge bench, passed the interim order while hearing a criminal petition filed by Minister K.J. George seeking to quash the private complaint. The High Court also issued notices to the Lokayukta, BJP leaders C.N. Ashwath Narayan, S.R. Vishwanath, and Dheeraj Muniraju, asking them to file objections. The next hearing has been scheduled for August 20.
Arguments in Court:
Senior advocate C.V. Nagesh, representing K.J. George, argued that public servants, including the minister, are protected under Section 17A of the Prevention of Corruption (PC) Act, which bars any inquiry or investigation without prior sanction from the competent authority. He contended that the Special Court’s order seeking a report from the Lokayukta Police Superintendent was without jurisdiction and bypassed mandatory procedures.
On the other hand, senior advocate Lakshmi Iyengar, appearing for the BJP complainants, argued that the order only instructed the Lokayukta Police to file a preliminary report, which is permissible at this stage and part of the initial procedure. Hence, she argued, the High Court should not stay the directive.
Background of the Case:
The controversy stems from a tender floated on September 26, 2024, to procure and install smart electricity meters. The BJP leaders alleged that the tender was illegally awarded to Davangere-based Rajashree Electricals, a shell company, without inviting separate tenders for different electricity supply companies across the state. Instead, the entire tender process was routed through BESCOM (Bangalore Electricity Supply Company), raising suspicions of favoritism and corruption.
The private complaint named Energy Minister K.J. George, Additional Chief Secretary Gaurav Gupta, former BESCOM MD Mahantesh Bilagi, and Technical Director H.J. Ramesh as accused. The Special Court for People’s Representatives had on July 23 directed the Lokayukta Police Superintendent to submit a report, prompting Minister George to challenge the order in the High Court.
The High Court’s interim stay has now put a temporary pause on the Lokayukta’s probe, at least until the next hearing on August 20.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
K'taka remains central to Aequs' strategy, says min Patil amid row over firm's investment in TN
Bengaluru (PTI): Karnataka Commerce and Industries Minister M B Patil on Monday asserted that Aequs continues to expand in the state and that its proposed investment in neighbouring Tamil Nadu was a business decision aimed at diversification, not a shift away from Karnataka.
Reacting to criticism on social media over reports that the Karnataka-based firm had signed a major investment deal in Tamil Nadu's Krishnagiri district for setting up a specialised aerospace and defense manufacturing cluster, he said the state government was fully aware of the company's plans and remained confident about its long-term commitment to Karnataka.
"While we welcome every major investment in India, would like to clarify a few points," Patil said in a post on 'X'.
Aequs was significantly expanding its footprint within Karnataka, including a Rs 3,000 crore investment in Kolar for electronics manufacturing.
"Its recently approved Rs 1,500 crore ECMS project will also be grounded in the state. Karnataka remains central to its long-term strategy," he said.
Patil added that the government had prior knowledge of the TN proposal.
The government was already informed and aware that the TN investment is a business decision aimed at geographic diversification and de-risking operations, not a shift away from Karnataka.
"Healthy competition between states strengthens India's manufacturing ecosystem," he said.
Emphasising the state's focus on high-technology sectors, Patil said, "We remain committed to deepening Karnataka's leadership in aerospace and advanced manufacturing, and our engagement with industry partners is strong and ongoing."
The Aequs Group has pledged Rs 4,000 crore to bolster Tamil Nadu's aerospace manufacturing capabilities at the SIPCOT-Shoolagiri Industrial Park in Krishnagiri district.
The group proposes to establish a specialised aerospace and defense manufacturing cluster for the production of aircraft engines, gearbox components, and precision engineering parts. This initiative is expected to provide employment to 7,000 individuals.
