Karnataka waste tender scam? BJP alleges Rs 36,000-crore loot, seeks CBI probe
A massive waste management contract in Karnataka has triggered fresh political fireworks, with the BJP alleging blacklisted firms, huge cost escalations, internal government objections and a trail that could reach the state's top leadership.
Senior BJP leader R Ashoka on Wednesday accused the Congress government in Karnataka of irregularities in a long-term waste management contract, alleging a Rs 36,000 crore "loot" and claiming that the tender was awarded to a blacklisted company.
Addressing reporters, Ashoka claimed he would release documents to support the allegations and alleged that no other state in the country had witnessed "such large-scale looting in the name of waste management".
"The Congress has looted Rs 36,000 crore in the name of solid waste management. I will release the documents today," he said.
BLACKLISTED FIRM AT CENTRE OF ROW
The BJP leader alleged that the waste-processing contract had been awarded to Ramky, a company that he claimed had previously been blacklisted.
"This Ramky company to which the waste management tender has been given is debarred by the World Bank because of a financial fraud that they had committed," Ashoka said.
He also claimed that the Bengaluru civic body had blacklisted the company in 2016.
"This company has been blacklisted by the World Bank and in Bengaluru as well, and now the tender has been given to this company. For others it's a blacklist, for Congress it's a whitelist," he said.
According to Ashoka, the contract has been awarded for a period of 30 years and includes a provision allowing the company to raise a loan of Rs 1,500 crore.
COST ESCALATION CLAIMS
Ashoka alleged that the new contract would impose a massive financial burden on the state compared with the previous waste management system.
He said that under the earlier arrangement, Rs 514 crore was spent on storage and transportation of waste, while Rs 380 crore went towards waste processing. Including payments to pourakarmikas, the total expenditure stood at Rs 1,344 crore.
Under the new agreement, however, the government is expected to pay Rs 39,437 crore over 30 years for waste processing alone, he claimed.
"The total amount to be paid for waste processing is Rs 39,437 crore over 30 years. Compared to the earlier expenditure, there is a difference of Rs 33,000 crore. This means an additional Rs 33,000 crore is being paid," Ashoka alleged.
He further claimed that the government had accepted kickbacks worth Rs 10,000 crore in the deal.
FINANCE DEPARTMENT RAISED RED FLAGS: ASHOKA
The BJP leader alleged that the state's Finance Department had raised serious concerns over the proposal and questioned the decision to award a contract spanning three decades.
According to Ashoka, the department had advised the government against a 30-year agreement and recommended reducing the tenure to 10 years.
He claimed officials had also warned that the city's waste management system could collapse under the proposed arrangement.
"The Finance Department has flagged the proposal and questioned why a 30-year tender was awarded," he said.
LINK TO CONGRESS INFIGHTING?
Ashoka also sought to link the controversy to the recent tussle within the ruling Congress over the Bengaluru development portfolio.
"You've been watching the infighting in Congress over the Bengaluru development portfolio. It's because of this," he alleged.
He further claimed that a Delhi-based company had been used in the process and alleged that the Congress high command was involved, though he did not provide details.
BJP TO MOVE GOVERNOR, LOKAYUKTA
Stepping up the attack, Ashoka demanded that the Karnataka government withdraw the tender and explain why it was awarded to a company facing blacklisting allegations.
"We demand the government to take back this tender. I ask them why they gave the tender to a blacklisted company," he said.
Ashoka announced that the BJP would submit documents related to the matter to the Governor and approach the Lokayukta.
"We will submit these documents to the Governor. I will meet the Lokayukta today," he said.
"I will file a complaint with the Lokayukta as well. It must be handed over to CBI."
Senior BJP leader R Ashoka on Wednesday accused the Congress government in Karnataka of irregularities in a long-term waste management contract, alleging a Rs 36,000 crore "loot" and claiming that the tender was awarded to a blacklisted company.
Addressing reporters, Ashoka claimed he would release documents to support the allegations and alleged that no other state in the country had witnessed "such large-scale looting in the name of waste management".
"The Congress has looted Rs 36,000 crore in the name of solid waste management. I will release the documents today," he said.
BLACKLISTED FIRM AT CENTRE OF ROW
The BJP leader alleged that the waste-processing contract had been awarded to Ramky, a company that he claimed had previously been blacklisted.
"This Ramky company to which the waste management tender has been given is debarred by the World Bank because of a financial fraud that they had committed," Ashoka said.
He also claimed that the Bengaluru civic body had blacklisted the company in 2016.
"This company has been blacklisted by the World Bank and in Bengaluru as well, and now the tender has been given to this company. For others it's a blacklist, for Congress it's a whitelist," he said.
According to Ashoka, the contract has been awarded for a period of 30 years and includes a provision allowing the company to raise a loan of Rs 1,500 crore.
COST ESCALATION CLAIMS
Ashoka alleged that the new contract would impose a massive financial burden on the state compared with the previous waste management system.
He said that under the earlier arrangement, Rs 514 crore was spent on storage and transportation of waste, while Rs 380 crore went towards waste processing. Including payments to pourakarmikas, the total expenditure stood at Rs 1,344 crore.
Under the new agreement, however, the government is expected to pay Rs 39,437 crore over 30 years for waste processing alone, he claimed.
"The total amount to be paid for waste processing is Rs 39,437 crore over 30 years. Compared to the earlier expenditure, there is a difference of Rs 33,000 crore. This means an additional Rs 33,000 crore is being paid," Ashoka alleged.
He further claimed that the government had accepted kickbacks worth Rs 10,000 crore in the deal.
FINANCE DEPARTMENT RAISED RED FLAGS: ASHOKA
The BJP leader alleged that the state's Finance Department had raised serious concerns over the proposal and questioned the decision to award a contract spanning three decades.
According to Ashoka, the department had advised the government against a 30-year agreement and recommended reducing the tenure to 10 years.
He claimed officials had also warned that the city's waste management system could collapse under the proposed arrangement.
"The Finance Department has flagged the proposal and questioned why a 30-year tender was awarded," he said.
LINK TO CONGRESS INFIGHTING?
Ashoka also sought to link the controversy to the recent tussle within the ruling Congress over the Bengaluru development portfolio.
"You've been watching the infighting in Congress over the Bengaluru development portfolio. It's because of this," he alleged.
He further claimed that a Delhi-based company had been used in the process and alleged that the Congress high command was involved, though he did not provide details.
BJP TO MOVE GOVERNOR, LOKAYUKTA
Stepping up the attack, Ashoka demanded that the Karnataka government withdraw the tender and explain why it was awarded to a company facing blacklisting allegations.
"We demand the government to take back this tender. I ask them why they gave the tender to a blacklisted company," he said.
Ashoka announced that the BJP would submit documents related to the matter to the Governor and approach the Lokayukta.
"We will submit these documents to the Governor. I will meet the Lokayukta today," he said.
"I will file a complaint with the Lokayukta as well. It must be handed over to CBI."
