UDD officers' 'silence' in Karnataka's City Gas Distribution policy under Lokayukta lens

Bengaluru: Karnataka's City Gas Distribution (CGD) policy—which slashed pipeline installation charges from Rs 1,957 per metre to just Re 1—has come under the Lokayukta scanner as it is expected to cause losses to the tune of Rs 5,000 crore to local bodies across the state. 

Five officers of the Urban Development Department (UDD), including one retired, have been asked to explain why they withheld their opinion before the policy was approved by the state Cabinet. 

Acting on a complaint by Manjunath S, state vice-president of the Karnataka Rashtra Samiti, the Lokayukta’s Additional Registrar (Enquiry) has directed the officers to submit objections and supporting documents by October 6, warning that non-compliance will invite "further action based on law". 

Notices have been served on Rakesh Singh, then Additional Chief Secretary (UDD), and his subordinates Tukaram Kalyankar (Deputy Secretary), Lakshmisagar NK (Under Secretary), Channakeshava (Section Officer, BBMP) and Hemant GR (Assistant). The notices were issued on the Lokayukta's orders. 

At the centre of the controversy is the sharp reduction in permission and supervision charges, which complainants allege benefited private gas companies while depriving local bodies of crucial revenue. 

Eight companies—Adani Total Gas Ltd, GAIL Gas Ltd, Megha Engineering, Indian Oil-Adani Gas Pvt Ltd, AGP City Gas Pvt Ltd, Bharat Gas Resources Ltd and others—are among the major beneficiaries. Together, they were permitted to lay over 25,000 km of pipelines across the state, including Bengaluru. 

Documents show that the UDD had fixed installation charges of Rs 1,857 per metre and Rs 100 for supervision (Rs 1,957 per metre in total) in 2020. As a result, different government entities, including the now-dissolved Bruhat Bengaluru Mahanagara Palike (BBMP), had earned Rs 281.68 crore for permitting pipelines totalling over 4,630 km. After the new policy, revenue saw a dramatic decline to just Rs 20.56 lakh despite allowing 1,136 km of pipeline permissions. 

The complaint alleges that despite warnings from the Public Works Department (PWD) about "serious revenue implications", the UDD did not file its opinion, allowing the Cabinet to approve the policy. Files indicate objections raised in October 2022 and January 2023 remained pending for over 60 days just in the UDD. 

"The decision to slash the installation charges is profiteering at public expense," said Manjunath S, the complainant. "The UDD’s silence looks deliberate despite reminders, including one from the CM's office." 

Interestingly, the policy had been deferred twice during the BJP’s tenure but was approved within months of the Congress government taking office. At the time of approval, the government had instructed the companies to pass on the benefit to end consumers by reducing the cost of PNG and CNG. 

A gas network representative defended the policy, saying it aims to promote investment in the state, provide clean and green fuel for households and automobiles, and foster sustainable industrial growth. "While the government may have lost installation revenue, it benefits from recurring tax revenue and broader social gains," the representative added.