71-year-old Murthy became the 24th Chairman of the Upper House and the first ever BJP leader to hold the post.
Deputy Chairman Puttanna announced the unanimous election of Murthy, a four-time MLC.
Murthy on July 3 had resigned as the Deputy Chairman of the State Planning Board after the ruling BJP named him as the party nominee for the Council chairman post.
He had also served as the Minister for Medical Education in the JDS-BJP coalition and leader of the BJP opposition in the Council.
Chief Minister B S Yeddyurappa, Opposition Congress leader in the House Motamma, M C Nanaiah of JDS and others felicitated Murthy on his election.
Published 05 July 2010, 12:46 IST