High Court of Karnataka Pronounces Order in Writ Petition Challenging Reservation in Government Tenders for Scheduled Castes and Scheduled Tribes. Petitioner Asserts that Amendment to Section 6 of Karnataka Transparency in Public Procurements Act, 1999 and Insertion of Rule 27(A) Providing 17.15% and 6.95% Reservation for SC/ST in Works up to ₹50 Lakhs Violates Constitutional Rights.

Writ petition under Articles 226 and 227 of the Constitution challenging the constitutional validity of amendments to the KTPP Act and Rules that introduce reservation in government tenders for Scheduled Castes and Scheduled Tribes.

Petitioner sought a writ of certiorari to quash the notifications dated 17.07.2017 and 15.09.2017, and to strike down the amended provisions as ultra vires the Constitution.

The petitioner, a contractor, alleged that the reservation created in the tender process violated his fundamental right to practice any profession, trade or business under Article 19(1)(g) and amounted to discrimination contrary to Articles 14, 15, and 16, without any constitutional sanction.

Whether providing reservation of 17.15% for SC and 6.95% for ST in government construction tenders up to ₹50 lakhs violates Articles 14, 15, 16, and 19(1)(g) of the Constitution. Whether reservation beyond education and employment, specifically in the tender process, is permissible under the constitutional scheme. Whether the impugned amendments are arbitrary, discriminatory, and ultra vires the Constitution.

Petitioner contended that reservation is constitutionally permitted only in education and employment, not in tenders; Part III of the Constitution does not envisage such reservation; the amendments violate Articles 14, 15(1), 16(1), and 19(1)(g); the State cannot tinker with fundamental rights; the amendments are arbitrary and unconstitutional. Respondent State argued that the legislation is based on Article 46 for distributive justice and upliftment of weaker sections; economic empowerment is a fundamental right as per R. Chandevarappa v. State of Karnataka; reservation in contracts furthers socio-economic justice; the amendments followed due legislative process including Presidential assent and are not unconstitutional.

provided that, the tender inviting authority shall, in the notified Departments out of those construction works, value of which does not exceed Rs.50.00 lakhs such number of works not exceeding 17.15 percent be tendered only among the tenders belonging to the Scheduled Castes Category and such number of works not exceeding 6.95 percent be tendered only among tenderers belonging to the Scheduled Tribes Category, by taking out the notices, communications and publications required to be taken following the prescribed procedures; Provided further that, if no tender from persons belonging to the Scheduled Castes or Scheduled Tribes as the case may be, is received in response to the invitation in two attempts such works may be tendered among others. The economic empowerment, therefore, to the poor, dalits and Tribes as an integral constitutional scheme of socio-economic democracy is a way of life of political democracy. Economic empowerment is, therefore, a basic human right and a fundamental right as part of right to live equality and of status and dignity to the poor, weaker sections, dalits and Tribes. There cannot be any reservation for Scheduled Castes or Scheduled Tribes in Tender Process. Part-III of the Constitution does not provide such reservation.

The petitioner filed the writ petition challenging the notifications. The State Government filed statement of objections and additional statement of objections. Intervenor applications (I.A. Nos. 1/2018, 3/2018, 5/2018) were filed and allowed. The matter was heard and reserved for orders, and the order was pronounced on 20.12.2019.

• Karnataka Transparency in Public Procurements Act, 1999: Section 6
• Karnataka Transparency in Public Procurements Rules, 2000: Rule 27(A)
• Constitution of India: Articles 14, 15, 16, 17, 19(1)(g), 46, 243D, 243T, 330, 332, 164