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Bengaluru: Karnataka Deputy Chief Minister D K Shivakumar on Sunday criticised the Union Budget presented by Finance Minister Nirmala Sitharaman, claiming it offered no tangible benefit to the state.

Though he said he was yet to study the budget in detail, Shivakumar asserted that Karnataka had gained little from it. “There is no benefit for our state from the central budget. I was observing it. They have now named a programme after Mahatma Gandhi, after repealing the MGNREGA Act that was named after him,” he said.

Speaking to reporters here, the Deputy Chief Minister demanded the restoration of MGNREGA, and made it clear that the newly enacted rural employment scheme — VB-G RAM G — which proposes a 60:40 fund-sharing formula between the Centre and the states, would not be implemented in Karnataka.

“I don’t see any major share for our state in this budget,” he added.

Shivakumar, who also holds charge of Bengaluru development, said there were high expectations for the city from the Union Budget. “The Prime Minister calls Bengaluru a ‘global city’, but what has the Centre done for it?” he asked.

He also drew attention to the problems faced by sugar factories, particularly those in the cooperative sector, alleging a lack of timely decisions and support from the central government.

Noting that the Centre has the authority to fix the minimum support price (MSP) for agricultural produce, Shivakumar said the Union government must take concrete steps to protect farmers’ interests.

Karnataka DGP (Civil Rights Enforcement) K Ramachandra Rao was suspended with immediate effect, as per a state government order issued on Monday, 19 January. The order cited conduct unbecoming of a government servant and causing embarrassment to the state administration.

The Karnataka government suspended Rao after a purported video showed him in a compromising position with a woman inside his official chamber. The video went viral on social media. Rao rejected the videos outright, terming them "fabricated and false".

Who is K Ramachandra Rao?

Rao is a DGP-rank officer who was heading the Directorate of Civil Rights Enforcement until his suspension. He was promoted to DGP in September 2023 and assumed office in October 2023, the Sunday Guardian reported.

He also served as the Chairman and Managing Director of the Karnataka State Police Housing and Infrastructure Development Corporation Limited.

His stint as the Inspector General of Police (IGP) for the Southern Range was also marred by controversy. In 2014, during a cash seizure near Mysuru’s Yelwal, officials claimed the seized amount was ₹20 lakh, while the accused (Kerala-based merchants) claimed it was around ₹2.27 crore.

Rao, who was present during the seizure, denied all allegations. However, he was transferred soon after.

Allegations of collusion with a businessman surfaced, and a senior police officer was quoted by The Sunday Guardian as saying, “In Rao’s case, the CID has clearly mentioned that there was a great degree of lapse on the part of Rao and a deputy superintendent of police after it was brought to their notice that a few policemen, including a gunman attached to the IGP, were involved in the robbery.”

Rao had denied all wrongdoing in that incident. Despite past controversies, he rose to the state’s top police position, the Sunday Guardian reported.

Ranya Rao’s stepfather

Rao is the stepfather of Kannada actress Harshavardhini Ranya alias Ranya Rao, accused of orchestrating the illegal import of gold worth over ₹12.56 crore from Dubai to India along with two others — businessman Tarun Raju, and jewellery dealer Sahil Jain.

‘Obscene video’ controversy

A viral video showed Rao behaving inappropriately with a woman inside his office while in uniform.

The Karnataka government said in its Monday order that “vide videos and news reports widely broadcast on public news channels and media platforms, it is observed that Dr K Ramachandra Rao has acted in an obscene manner which is unbecoming of a Government Servant and also causing embarrassment to the Government.”

The order said the matter was examined by the state government, which found that the officer's conduct amounted to a violation of Rule 3 of the All India Services (Conduct) Rules, 1968.

The government said it is prima facie satisfied that "it is necessary to place Rao under suspension with immediate effect, pending inquiry".

During the suspension period, Rao will be entitled to subsistence allowance as per Rule 4 of the All India Services (Discipline and Appeal) Rules, 1969.

The order also places restrictions on his movement, stating that during the period of suspension, the officer must not leave headquarters under any circumstances without the written permission of the state government.