R Ashoka Alleges Rs 10,000 Crore Kickback In Bengaluru Waste Management Tender

A massive political controversy erupted in Bengaluru on June 14, 2026, over a Rs 39,437-crore integrated solid waste management tender. Leader of the Opposition R Ashoka filed complaints with the Lokayukta and the Governor, alleging large-scale irregularities and a Rs 10,000-crore kickback in the contract awarded to Delhi-based MSW Solutions Ltd.

The 30-year contract, which can be extended by five years, was awarded by Bengaluru Solid Waste Management Ltd (BSWML) to manage the city's daily output of 5,500 to 6,000 tonnes of solid waste. Chief Minister DK Shivakumar has strongly denied the allegations, countering that Ashoka is operating on behalf of a "garbage mafia."

The dispute intensified after Union Minister Shobha Karandlaje wrote to Chief Secretary Shalini Rajneesh on May 30, demanding an immediate suspension of the tender and a CBI inquiry. The Lokayukta has assured that immediate action will be taken regarding the complaints.

According to the opposition, the tender process went through three rounds of bidding. While the first round drew zero bids and the second round saw all three bidders disqualified, the same three bidders were suddenly declared technically qualified in the third round. Ashoka and Karandlaje alleged that BSWML relaxed the eligibility criteria without the required approval from the finance department to favor the winning company, which is a subsidiary of Hyderabad-based Ramky Group.

Financial objections have also been raised regarding the scale of the contract. At existing rates, waste processing over 30 years would cost approximately Rs 6,117 crore. Under the newly approved contract, the cost rises to Rs 39,437 crore, placing an additional Rs 33,320 crore burden on taxpayers.

The opposition pointed out that a 5% annual escalation clause could compound the tipping fee—the per-tonne processing charge—from the approved Rs 2,998 to Rs 9,297 by 2056. The state finance department had previously recommended capping this escalation at 2.5% and reducing the contract tenure to 10 years, but these recommendations were reportedly bypassed.

Additionally, the complaints highlight that both packages of the tender were awarded to a single company at rates 19% above the originally approved estimates. Under a May 2022 government circular, bids exceeding 10% of the estimated value should have triggered a mandatory re-tendering process.