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Quotas, Questions, and the Constitution: The Debate Over 4% Muslim Reservation in Karnataka
The Business Guardian
|May 01, 2025
The recent amendment of 2025 to the KTPP Act, which established a 4% reservation in public procurement contracts for contractors from Category II(B) of the state's Other Backward Classes (OBC) list, encompassing Muslims. This reservation is relevant for civil works contracts worth up to Rs.2 crore and for goods or services contracts valued at up to Rs.1 crore.

On March 21, 2025, the Karnataka Assembly passed a bill amending the Karnataka Transparency in Public Procurement (KTPP) Act to establish a 4% reservation in public contracts for Category II(B), including backward castes within the Muslim community.
This reservation pertains to government civil works contracts valued up to Rs. 2 crore, an increase from the prior limit of Rs. 1 crore.
The goal of this legislation is to increase the participation of underserved Muslim communities in public procurement processes.
Since the governing Congress party argues for the need and the opposition BJP doubts its constitutional legality, it has caused significant political debate.
Karnataka Governor Thawar Chand Gehlot has forwarded a bill that was approved by both houses of the state's legislature to President Droupadi Murmu for her approval, granting Muslims quota in government contracts.
The BJP claimed the Bill was illegal because there is no provision in the Indian Constitution permitting religion-based reservations.
It said that the Bill is a reflection of the ruling Congress's appeasement tactics.
WHAT IS THIS LAW ABOUT?
The KTPP Act, 1999, was enforced to promote openness, fairness, and responsibility in how public entities in the state handle their procurement processes.
The Act establishes clear and consistent procedures for inviting, processing, and accepting tenders related to the procurement of goods, services, and civil works by government departments, public sector undertakings, and local bodies.
The Act seeks to simplify procurement processes to help avoid irregularities and ensure that public funds are used efficiently.
MAJOR AMENDMENTS OVER TIME
Since it was first introduced, the KTPP Act has seen various updates to tackle new challenges and enhance procurement practices.
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