- 1 - HC-KAR NC: 2025:KHC:32576-DB WP No. 18118 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF AUGUST, 2025 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE VENKATESH NAIK T WRIT PETITION NO. 18118 OF 2023 (GM-KLA) BETWEEN: 1. KARNATAKA RURAL INFRASTRUCTURE DEVELOPMENT LIMITED REP BY ITS MANAGING DIRECTOR, GRAMEENABHIVRUDHI BHAVANA, ANAND RAO CIRCLE, BENGALURU-560009. …PETITIONER (BY SMT. LAKSHMY IYENGAR, SENIOR COUNSEL FOR SRI. NATARAJU T., ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS PRINCIPAL SECRETARY, URBAN DEVELOPMENT DEPARTMENT, M.S.BUILDING, DR.AMBEDKAR VEEDHI, BENGALURU-560001. 2. KARNATAKA LOKAYUKTA M.S. BUILDING, BENGALURU-560001 BY ITS REGISTRAR. Digitally signed by VASANTHA KUMARY B K Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:32576-DB WP No. 18118 of 2023 3. THE COMMISSIONER B.B.M.P, N R SQUARE, BENGALURU-560002. …RESPONDENTS (BY SMT. PRATHIBHA.R.K, AGA FOR R-1; SRI. VENKATESH ARABATTI, ADVOCATE FOR R-2; SMT. M.R.SINCHANA, ADVOCATE FOR R-3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI QUASHING THE IMPUGNED REPORT VIDE ANNEXURE-C IN No. COMPT/LOK/BCD-1668/2020/ARE-1 SUBMITTED BY THE RESPONDENT No-2 DATED 24.01.2022 IN RESPECT OF THE PETITIONER IS CONCERNED, ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE VENKATESH NAIK T ORAL ORDER (PER: HON'BLE MR. JUSTICE D K SINGH) Heard Smt. Lakshmy Iyengar, learned Senior Counsel assisted by Mr. Nataraju T, learned counsel for the petitioner, Smt. Prathibha R.K., learned Additional Government Advocate for respondent No.1, Mr. Venkatesh S Arabatti, learned counsel for respondent No.2 and Smt. M.R. Sinchana, learned counsel for respondent No.3. - 3 - HC-KAR NC: 2025:KHC:32576-DB WP No. 18118 of 2023 2. The petitioner is the Karnataka Rural Infrastructure Development Limited (for short 'the KRIDL'), a Government of Karnataka Undertaking. A complaint was filed by Mr. D.K.Suresh, who is the ex-Member of the Parliament representing the Bengaluru Rural Parliamentary Constituency, against one Mr. Doddaiah, Chief Engineer, TVCC Cell, Bruhath Bengaluru Mahanagara Palike (for short 'the BBMP') and also against 10 other Engineers working in different cadres. The allegation in the complaint was that the public of Rajarajeshwarinagar Assembly Constituency, which comes under the jurisdiction of the Bengaluru Rural Lok Sabha Constituency, had given a complaint to Mr. D.K.Suresh to the effect that funds have been allotted by the State Government and the Central Government for various developmental works for the year 2019-20 for which, work orders were obtained and that, without executing the work, in January 2020, bills were submitted through the petitioner herein for payment to the contractors. It was alleged that there was misappropriation of the Government funds to the tune of Rs.250 Crores. The bills of - 4 - HC-KAR NC: 2025:KHC:32576-DB WP No. 18118 of 2023 the work executed by the petitioner for the BBMP were also mentioned in the complaint. 3. The Lokayukta conducted investigation in respect of the allegation of Mr. D.K.Suresh and found substance in the allegation, and made the following recommendations to the Government in the report dated 24.01.2022 which was submitted under Section 12(3) of the Karnataka Lokayukta Act, 1984 (for short 'the said Act’): "1. Desirability of not entrusting any infrastructural development work/other works required to be executed by the BBMP to KRIDL. 2. To consider constituting special committee of experts with a high ranking public servant as its Chairman to make a sample survey of 10% of the work executed or being executed by the KRIDL which has been entrusted to it for the last two years by BBMP or in the alternative to consider making a reference by the Government in exercise of its power under Section 7(2A) of Karnataka Lokayukta Act, 1984 to the Lokayukta to get all the works entrusted to KRIDL by BBMP which are already executed within a period of two years or in the process of execution investigated in the interest of `justice." - 5 - HC-KAR NC: 2025:KHC:32576-DB WP No. 18118 of 2023 4. Smt. Lakhsmy Iyengar, learned Senior Counsel appearing for the petitioner-KRIDL submits that no notice was issued to the petitioner and no opportunity was afforded to them to put their case before the Lokayukta. She further submits that the recommendation of the Lokayukta for not entrusting any infrastructural development work or other works by the BBMP to the petitioner is beyond the power and jurisdiction of the Lokayukta conferred under the provisions of the said Act. The Lokayukta can only enquire into the allegations made against the Government/public servant and the authorities as enumerated in the Act. Issuing a direction for not entrusting any work to the Corporation, which is the Karnataka State Government undertaking, is illegal and beyond the jurisdiction and power of the Lokayukta. She further submits that in compliance of the said recommendation, the Government issued an order dated 27.07.2022 directing the BBMP not to entrust any infrastructural work to the petitioner- KRIDL. 5. Mr. Venkatesh S Arabatti, learned counsel for the respondent-Lokayukta submits that the Lokayukta may give - 6 - HC-KAR NC: 2025:KHC:32576-DB WP No. 18118 of 2023 appropriate direction, if it finds that there has been major misappropriation of the Government funds by an agency, may be a Government agency/undertaking. Therefore, the direction issued in the report submitted by the Lokayukta under Section 12(3) of the said Act is neither illegal nor one without jurisdiction or beyond the powers of the Lokayukta under the Act. He, therefore, submits that the said recommendation is not required to be interfered with by this Court in exercise of the jurisdiction under Article 226 of the Constitution of India. Learned counsel, however, fairly accepted that no notice was issued to the petitioner–KRIDL to put forth their case in respect of the recommendation made in the report. He further submits that by the said recommendation, the Lokayukta has only desired the Government to take conscious decision for entrusting future infrastructural works of the BBMP to the petitioner. 6. We have considered the provisions of the Karnataka Lokayukta Act, 1984 and the Rules made thereunder. The petitioner is a Government undertaking. We do not find from the provisions of the Act and the Rules made thereunder that - 7 - HC-KAR NC: 2025:KHC:32576-DB WP No. 18118 of 2023 the Lokayukta can direct the Government not to entrust the work to a particular Government Agency even if some of its officers have been found involved in misappropriation of funds of the Government in executing the work. The power of the Lokayukta is confined to making investigation into a complaint and making recommendation against the Government/public servants as defined under the Act. Therefore, we find that direction No.1 is undesirable. The Lokayukta should not have issued such a direction. It is for the Government to decide the appropriate agency for executing the infrastructural work of the BBMP. Therefore, we set aside direction No.1 in the report dated 24.01.2022 of the Lokayukta submitted to the Government under Section 12(3) of the Act. 7. In sequel to the report dated 24.01.2022 of the Lokayukta under Section 12(3) of the said Act, the order dated 27.07.2022 has been passed by the Government for not entrusting the work to the petitioner. As we have set aside direction No.1 of the Lokayukta, we consequently set aside the order dated 27.07.2022 in No.NaAaE 23 MNU 2022(part-2) passed by the Government. However, it is for the Government - 8 - HC-KAR NC: 2025:KHC:32576-DB WP No. 18118 of 2023 to entrust or not to entrust the infrastructural work of the BBMP to the petitioner i.e., KRIDL and not for the Lokayukta. We make it clear that we have not interfered with direction No.2 of the Lokayukta in its report dated 24.01.2022. 8. Accordingly, writ petition is partly allowed. SD/- (D K SINGH) JUDGE SD/- (VENKATESH NAIK T) JUDGE RKA List No.: 1 Sl No.: 19