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Bengaluru: The Karnataka government on Tuesday tabled a Bill in the Legislative Assembly to introduce a 4 per cent reservation for Muslims in public contracts.

The Karnataka Transparency in Public Procurements (Amendment) Bill, 2025 was tabled by Law and Parliamentary Affairs Minister H K Patil.

On Friday, the Cabinet approved an amendment to the Karnataka Transparency in Public Procurements (KTPP) Act, reserving 4 per cent of contracts for Muslims in civil works valued up to Rs 2 crore and goods/services contracts up to Rs 1 crore. This proposal was announced by Chief Minister Siddaramaiah in the 2025-26 Budget, presented on March 7.

Currently, Karnataka provides reservations in civil works contracts for Scheduled Castes (SC) and Scheduled Tribes (ST) at 24 per cent, Other Backward Classes (OBC)–Category 1 at 4 per cent, and OBC–Category 2A at 15 per cent.

There had been demands to include Muslims under Category 2B of the OBCs with a 4 per cent reservation.

The BJP has called the Karnataka government’s move to provide a 4 per cent reservation for Muslims in government contracts an "unconstitutional misadventure" and vowed to oppose it at all levels, including challenging it in court, until it is revoked.

The Bill presented on Tuesday further amends the KTPP Act, 1999, to implement the proposal outlined in the 2025-26 budget speech, according to its statement of objects and reasons.

The Bill aims to address unemployment among backward classes and promote their participation in government construction projects, reserving up to 4 per cent for individuals in Category 2B (Muslims) for works valued up to Rs 2 crore.

The Bill also provides for reservations among Scheduled Castes, Scheduled Tribes, and Backward Classes in the procurement of goods and services, excluding construction works, in notified departments, for contracts valued up to Rs 1 crore.

It encourages their participation in such procurement to the extent of 17.5 per cent for persons belonging to SC, 6.95 per cent for those belonging to ST, 4 per cent for Category 1 of OBC, 15 per cent for Category 2A, and 4 per cent for Category 2B (Muslims).

The Bill stated that the proposed legislative measure involves no additional expenditure.

Mangaluru: The Bharatiya Janata Party (BJP) has strongly criticized the Karnataka government's decision to reserve 4% of government contracts for Muslims, calling it an unconstitutional move that promotes division in society. Dakshina Kannada MP Captain Brijesh Chowta reaffirmed the party’s commitment to challenging this policy both legally and politically.

Speaking to the media, Capt. Chowta stated that Dr. B.R. Ambedkar had introduced reservations specifically for Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBCs) to uplift marginalized communities. He accused Chief Minister Siddaramaiah of misusing the concept of AHINDA politics to cater to specific organizations rather than working for the welfare of all backward communities in Karnataka.

“The Congress government’s decision is an unconstitutional and religion-based move aimed at appeasement politics. It is a betrayal of backward communities and a clear attempt to divide society along religious lines,” said Capt. Chowta. He further asserted that the BJP would not remain silent and would oppose the decision at every level.

The BJP plans to file a writ petition in the High Court seeking to overturn the government's move, which it believes is a calculated effort to gain religious vote banks. Capt. Chowta also condemned the government’s allocation of Rs 1,000 crore under the "Minority Colonies Development Fund" in the state budget, arguing that such policies undermine the principles of equality enshrined in the Constitution.

He emphasized that the Supreme Court has repeatedly ruled against religion-based reservations and reiterated that Dr. Ambedkar himself opposed such policies during the drafting of the Constitution. “Previous attempts to introduce religion-based reservations in other states have been struck down by courts, yet the Siddaramaiah government continues to push its vote-bank agenda. We will fight until this unconstitutional decision is revoked,” he added.

Kannada actor Harshavardhini Ranya – also known as Ranya Rao, arrested for smuggling gold from Dubai – was allotted land to set up a steel plant by the previous Karnataka government in February 2023, said the Karnataka Industrial Area Development Board (KIADB) said on Sunday.

Ranya Rao was found to be in possession of gold bars worth ₹12.56 crore at the Kempegowda International Airport in Bengaluru. Searches were also conducted at her residence, and gold jewellery worth ₹2.06 crore and Indian currency amounting to ₹2.67 crore were seized, the Directorate of Revenue Intelligence had said on Wednesday.

Ranya is the stepdaughter of DGP-rank senior IPS officer Ramachandra Rao.

The KIADB's statement comes after reports claimed that a company linked to Ranya Rao was allotted 12 acres of industrial land by the board in 2023.

The office of the minister for medium and large industries MB Patil shared the government's final notification issued on February 22, 2023, regarding the allocation of land to Ranya Rao's firm Ksiroda India at the Sira Industrial Area in the Tumakuru district, news agency PTI reported.

The Congress came to power after defeating the Basavaraj Bommai-led Bharatiya Janata Party in the Karnataka assembly election in May 2023.

The proceedings of the Karnataka government, shared by the minister's office, said, "Approval to the proposal of M/s Ksiroda India Private Limited to establish a unit for manufacture of 'steel products - TMT bars, rods and allied products' at Sira Industrial Area, Tumakuru district.

"The government is pleased to accord in-principle approval to the investment proposal of ₹138 crore, generating employment to about 160 persons with the following infrastructure assistances, incentives and concessions," it said.

In a press release issued by MB Patil's office, the KIADB said the allotment to the company linked to Ranjya Rao was done in January 2023.

KIADB CEO Mahesh said on Sunday Ksiroda India was allotted 12 acres of land on January 2, 2023, by the previous government, referring to the BJP, the PTI report added.

"The land, located in Sira Industrial Area, Tumakuru district, was approved for allotment during the 137th State Level Single Window Clearance Committee (SLSWCC) meeting held on the same day, when the last govt was in power," PTI quoted Mahesh as saying.

According to the KIADB press release, the company had submitted a proposal to set up a manufacturing unit for steel TMT bars, rods, and allied products, with an investment of ₹138 crore. The project was expected to generate approximately 160 jobs.

Ramachandra Rao is currently serving as the chairman and managing director of the Karnataka State Police Housing and Infrastructure Development Corporation Ltd.

The total seizure in the case stood at ₹17.29 crore, including assets worth ₹4.73 crore, marking a significant blow to organised gold smuggling networks.