- Leader of the Opposition R Ashok alleged a Rs 39,000-crore scam in Bengaluru waste processing
- He claimed Rs 10,000 crore kickbacks are involved in the 35-year contract to MSW Solutions Limited
- Ashok alleged that the new contract raises waste processing costs from Rs 6,117 crore to Rs 39,437 crore
Leader of the Opposition R Ashok alleged on Tuesday that the Congress government in Karnataka has orchestrated a massive Rs 39,000-crore scam in the name of waste processing in Bengaluru and received kickbacks worth Rs 10,000 crore through the tender process. Ashok claimed that the contract awarded to MSW Solutions Limited, linked to Ramky Group, is one of the biggest scams in the country's history. He alleged that the tender has been granted for a period of 35 years -- a 30-year term with a provision for a five-year extension.
Bengaluru previously earned recognition as one of the cleanest cities under the BJP government, he claimed, alleging that the Congress government has now facilitated a massive financial irregularity in the guise of waste management.
He said the city currently spends Rs 514 crore annually on waste collection and transportation, Rs 380 crore on waste processing and disposal, and Rs 444 crore on salaries for 11,000 civic workers, taking the total annual expenditure to Rs 1,344 crore.
Ashok alleged that local contractors had been handling waste management operations until now, but the new Rs 39,000-crore contract was awarded to a Delhi-based company. He claimed the project includes a Rs 10,000-crore kickback and alleged that expert recommendations from the government-owned RITES were ignored in favour of advice from an unrecognised consultant.
He further alleged that the selected company has been allowed to raise loans worth Rs1,500 crore and has also been provided government land for the project.
Highlighting the financial implications, Ashok said the tipping fee currently paid is Rs 260 per tonne, while the new contract proposes Rs 2,400 per tonne. He claimed that continuing with the existing expenditure model for 30 years will cost around Rs 6,117 crore, whereas the new contract would push the figure to Rs 39,437 crore, leading to an additional burden of over Rs 33,000 crore.
He also alleged that the financial bids submitted under the two packages for Bengaluru North and South were significantly higher than expected and claimed that the cost of waste processing per tonne would rise sharply over the contract period.
Ashok further alleged procedural violations in the tender process, including inadequate scrutiny and failure to publish mandatory advertisements. The Finance Department, he said, had raised objections over awarding both packages to a single company, the unusually long contract duration, and the annual escalation clauses.
According to him, senior officials had advised reducing the contract period to 10 years and lowering the escalation rate to avoid a long-term financial burden on the city.
The BJP leader also alleged that Ramky had previously faced allegations of violations and that its contract had been cancelled by the BBMP in 2016. Despite this, the Congress government proceeded with awarding the contract, he claimed.
Ashok alleged that the proposal was cleared by the Cabinet before former Chief Minister Siddaramaiah stepped down and claimed that some ministers had expressed concerns about the project's potential political impact.
Demanding immediate cancellation of the tender, Ashok said the Congress government had turned waste management into a source of corruption and alleged that the entire process requires a thorough investigation.
Later in the day, Ashok met Karnataka Governor Thawar Chand Gehlot at Raj Bhavan and submitted a formal complaint. He urged the Governor to order a probe into the tender process, examine the eligibility of participating companies, investigate alleged flaws in the DPR stage, and scrutinise the approval process followed by the government.
