The Karnataka Congress government is preparing to forward a contentious bill—the Karnataka Transparency in Public Procurements (Amendment) Bill, 2025—to President Droupadi Murmu, after the state Governor Thaawarchand Gehlot declined to give it his assent or reconsider his earlier decision.

Bill Seeks 4% Quota for Muslims in Public Works Contracts

The amendment bill aims to provide 4% reservation for Muslim contractors in civil contracts worth up to ₹1 crore. This provision falls under Category-2B of the state's Other Backward Classes (OBC) list. If implemented, the reservation for Muslims would push total reservation in public procurement to 47%, adding to the existing quotas for SC/ST (24%), OBC Category-1 (4%), and OBC Category-2A (15%).

The bill was passed by the Karnataka state legislature in March 2025, but Governor Gehlot reserved the bill for the President’s assent on April 16, 2025, citing constitutional concerns over religion-based reservation.

Governor’s Objection and Legal References

In his official response, Governor Gehlot cited Articles 15 and 16 of the Indian Constitution, arguing that reservation based solely on religion is not permissible. He noted that affirmative action must be rooted in socio-economic and educational backwardness, not religion.

He also referenced the Supreme Court's observations in the State of Tamil Nadu vs Governor of Tamil Nadu case (2023), which emphasized the Governor’s discretionary powers and limitations with respect to granting assent to bills.

“I am constrained to not reconsider the decision for reservation of the Karnataka Transparency in Public Procurements (Amendment) Bill, 2025,” Governor Gehlot said in his formal communication.

Siddaramaiah Government’s Reservation Strategy

The roots of this proposal trace back to 2015, when then Chief Minister Siddaramaiah, during his earlier term, introduced 24% quotas for SC/STs in civil works contracts.

In 2023, his government expanded this reservation to include Most Backward Classes, aligning with the state’s focus on inclusive procurement policies. The latest amendment is seen as an extension of the same policy, now seeking to benefit communities listed under Category 2B, which includes Muslims.

Senior officials reportedly considered challenging the Governor’s refusal in court, but constitutional experts advised against legal action, suggesting the issue be handled via presidential assent instead.

BJP’s Fierce Opposition and National Political Repercussions

The Bharatiya Janata Party (BJP) has vehemently opposed the bill, branding it as a form of appeasement politics. They argue that it undermines the secular structure of the state and violates constitutional provisions.

Union Home Minister Amit Shah, during a rally in Jharkhand in 2024, stated, “There is no provision in the Constitution for religion-based reservation. Congress is indulging in appeasement.”

In March 2025, BJP MPs Tejasvi Surya and Nishikant Dubey raised the issue in the Lok Sabha, demanding the bill’s withdrawal. Surya claimed that the policy aims to favor banned outfits like PFI and KFD by awarding contracts to individuals allegedly associated with them.

“A secular State cannot take such a measure... This is to provide contracts to people associated with the banned PFI (Popular Front of India) and KFD (Karnataka Forum for Dignity),” said Surya.

Political History: From Abolishment to Revival

The bill's journey has been politically contentious. In March 2023, the previous BJP-led state government under Basavaraj Bommai had scrapped the 4% Muslim quota under the 2B category and redistributed it between Vokkaliga and Lingayat communities, creating new categories 2C and 2D.

This move shifted Muslims to the Economically Weaker Sections (EWS) category, allowing them to access 10% EWS quota instead. The current Congress government seeks to reverse that shift and restore affirmative action for Muslims under the OBC framework.

What’s Next: Cabinet Meeting and Presidential Referral

The issue is expected to be discussed in a Cabinet meeting chaired by Chief Minister Siddaramaiah. Following the Governor’s refusal to reconsider, the state government is likely to send the bill directly to the President for assent.

The fate of the bill now lies in the hands of President Droupadi Murmu, whose assent would be required for the law to be enacted.

Broader Implications

The development may also set a precedent for other states attempting to introduce community-specific quotas in public procurement or employment. It raises critical questions about the limits of affirmative action, the role of religion in welfare, and the scope of the Governor’s powers.

As India approaches the 2025 assembly elections in several states, the issue is likely to remain a hot-button political and legal topic, with implications for federal governance, constitutional interpretation, and minority welfare policies.

The Upcoming IPOs in this week and coming weeks are Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are 3B Films, N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.