Smart meter scam worth Rs 10,000 crore rocks Congress govt
July 27, 2026
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Home Politics

Karnataka: Smart meter scam worth Rs 10,000 crore rocks Congress government: BJP moves to court

Energy Minister KJ George is under fire as BJP leaders move court accusing the Congress government of a Rs 10,000 crore smart meter scam. Allegations include rigged tenders, inflated meter prices, and favoritism to a single contractor. The High Court has questioned the huge cost difference, intensifying pressure on the government

IndreshIndresh
Jul 18, 2025, 09:00 am IST
in Politics, Bharat, Karnataka
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Energy Minister KJ George involved in Smart Meter scam

Energy Minister KJ George involved in Smart Meter scam

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Bengaluru: The Congress government in Karnataka has landed in yet another corruption controversy — this time over the alleged multi-crore smart meter scam that has put Energy Minister KJ George in serious trouble. The opposition BJP has intensified its attack, accusing the Siddaramaiah-led government of orchestrating an “organized loot” of ordinary power consumers in the name of smart power reforms. The BJP recently filed a petition against K J George at elected representatives special court seeking action against him.

The controversy revolves around the alleged illegalities in the massive smart meter project rolled out by BESCOM under the central government’s RDSS (Revamped Distribution Sector Scheme). The BJP has filed a private complaint in the Special Court for People’s Representatives demanding registration of an FIR under the Prevention of Corruption Act against Minister George and senior officials of the Energy Department.

Tender manipulation and huge cost escalation

Former Deputy CM C.N. Ashwathnarayan, MLAs S.R. Vishwanath and Dheeraj Muniraju, who are spearheading the legal action, have alleged that the smart meter tender — worth over ₹10,000 crore — was deliberately manipulated to favour a single company: Rajshree Electricals of Davangere.

According to the complaint, instead of calling a global tender as required for such a large project, BESCOM restricted the scope to Rs 354 crore initially and later stretched the contract to over Rs 5,296 crore under dubious justifications. Shockingly, smart meters that cost ₹900 in neighbouring states are being forced on Karnataka consumers at rates ranging from Rs 5,000 to Rs 10,000.

High Court questions government’s motives

The Karnataka High Court too has raised serious questions about this glaring disparity. While hearing a writ petition filed by a citizen named Jayalakshmi, the court asked the state why a meter costing Rs 900 elsewhere should cost Rs 10,000 in Karnataka. The bench headed by Justice M. Nagaprasanna slammed the government for formulating policies that confuse and burden consumers and stayed the exorbitant fee.

The petition pointed out that not only is the installation price inflated, but BESCOM is also forcing consumers to pay monthly fees of Rs 75 per meter to Rajshree Electricals — creating a never-ending revenue stream for a single contractor at the expense of lakhs of ordinary citizens.

While the government, represented by Advocate General Shashikiran Shetty, argued that prepaid smart meters are only for temporary connections and postpaid smart meters are for new customers, the court was unimpressed. It noted that poor and middle-class consumers are being made to bear an unfair burden under the garb of modernization.

BJP demands Governor’s permission for probe

Pointing to the large-scale misuse of public money, the BJP leaders have requested the Governor’s sanction to prosecute Minister George and the BESCOM officials under the Prevention of Corruption Act. They argue that this is a clear case of collusion to benefit a single contractor by blocking competition and inflating costs.

Senior advocate Lakshmi Iyengar, representing the complainants, called it “one of the biggest scams” under the Congress regime and demanded an independent probe. “When the central scheme itself says consumers must not be overburdened, how is the Congress government justifying this looting?” she asked.

Meanwhile, consumer rights activists and citizen groups have also condemned the Congress government for betraying people’s trust by turning a basic utility into a money-minting machine for private players. With the High Court stay and a criminal complaint pending in the Special Court, the Siddaramaiah government faces another major embarrassment — yet again raising questions about its promise of “corruption-free” governance.

At a time when ordinary people are struggling with price hikes, the Congress regime’s silence on why smart meters cost 10 times more than elsewhere is deafening. If the court orders an FIR and full investigation, Minister KJ George could become the latest high-profile face of alleged corruption that threatens to haunt the Congress in the run-up to upcoming civic and by-elections.

As the scandal unfolds, all eyes will be on the court’s next hearing and whether the government will come clean or continue its evasive defense.

Topics: Smart Meter ScamKJ GeorgeEnergy Minister KJ GeorgeKarnataka governmentCongress Government
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