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Karnataka High Court sets aside defamation case against Rahul Gandhi over '40% commission' ad

The complaint had been lodged by BJP leader Keshav Prasad against Gandhi, Karnataka Chief Minister Siddaramaiah and Deputy Chief Minister DK Shivakumar.

February 17, 2026 / 15:54 IST
Rahul Gandhi (File image)
Snapshot AI
  • Karnataka High Court quashed defamation case against Rahul Gandhi
  • Case was over Congress's "40% commission" campaign ads
  • Court called continuing proceedings an abuse of law process

The Karnataka High Court on Tuesday quashed the criminal defamation proceedings initiated against Congress leader Rahul Gandhi in connection with the “40% commission” advertisements released during the run-up to the 2023 Assembly polls.

Justice Sunil Dutt Yadav, while allowing Gandhi’s petition, observed, "The petition is allowed. Allowing the proceedings to continue would amount to an abuse of the process of law. Proceedings so far as the petitioner (Rahul Gandhi) is concerned is set aside."

The complaint had been lodged by BJP leader Keshav Prasad against Gandhi, Karnataka Chief Minister Siddaramaiah, and Deputy Chief Minister DK Shivakumar. The grievance stemmed from Congress campaign material alleging that the BJP government in the State was collecting up to 40 percent commission or bribes from contractors and others for carrying out public works.

In its plea, the BJP alleged that the advertisements falsely targeted its leaders, including then Chief Minister Basavaraj Bommai, and sought action for defamation.

Earlier, a Magistrate court had granted bail to Siddaramaiah and DK Shivakumar on June 1, 2024, while Gandhi was granted bail on June 7, 2024.

Congress had intensified its PayCM campaign against the BJP government in the state.

As a part of the campaign, whose name is similar to the popular Paytm app used for transactions, the party launched posters that used Bommai's pictures and a QR code. Upon scanning, the QR code redirects one to a portal https://40percentsarkara.com/#/home.

The Congress claimed there were various scams, and contractors had to shell out 40 per cent commission (bribe) to secure public contracts.

“I want to ask you guys, one person comes, makes you people fight and then tells you that I am a patriot… I protect religion. And then, he takes away 40 per cent of your money. Will you call such a person a patriot, protector of religion or a thief?” Rahul Gandhi said amid the Bharat Jodo campaign in 2022.

Gandhi continued to comment that the BJP govenment is the most corrupt in India. “They take 40% commission, the same money that was used to steal MLAs of the previous government. He also attacked Prime Minister Narendra Modi and asked, “Will the PM tell about source of money used to buy MLAs in Goa, MP, Karnataka, Northeast.”

Union Home Minister Amit Shah hit back at Gandhi's allegations of '40% commission BJP govt' in Karnataka and said, “They can talk about it & should go to court if they have concrete evidence. Neither there's any probe nor there's any case. How will people believe in such baseless allegations?”

Rewati Karan
Rewati Karan is Senior Sub Editor at Moneycontrol. She covers law, politics, business, and national affairs. She was previously Principal Correspondent at Financial Express and Copyeditor at ThePrint where she wrote feature stories and covered legal news. She has also worked extensively in social media, videos and podcasts at ThePrint and India Today. She can be reached at rewati.karan@nw18.com | Twitter: @RewatiKaran
first published: Feb 17, 2026 03:25 pm

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