The Karnataka Cabinet on Friday (August 21) is learnt to have decided to again recommend the suspension of Karnataka Public Service Commission (KPSC) chairman Shivashankarappa S. Sahukar, who has been accused of favouring his two daughters for selection as Industrial Extension Officers.

One daughter has been accused of providing a false income certificate showing the family’s annual income as ₹40,000.

Earlier suspension

Sources said that the Governor had earlier suspended Mr. Sahukar and then sent the decision to be ratified by the Cabinet, which cleared it. However, this was seen as a procedural lapse. “The Cabinet took the decision again to overcome the lapse and has sent it to Governor Thaawarchand Gehlot, who will take further action,” sources said. Mr. Gehlot is expected to refer the matter to President Droupadi Murmu.

The development comes after the Karnataka High Court on August 18 set aside the Governor’s order of suspending Mr. Sahukar and had ordered reinstatement. The court had observed that the Governor’s order was “illegal” in the absence of aid and advice from the Council of Ministers. The advocate-on-record for the Governor had told the court that the President, acting on the Governor’s recommendation, on August 14, had referred to the apex court to hold an inquiry into the allegations against Mr. Sahukar. However, the court had then said that the issue raised in Mr. Sahukar’s case was on a different legal point.

For industries

In another decision, the Cabinet is learnt to have cleared the amendment to Karnataka Industries (Facilitation) Act, 2002, in a bid to strengthen the single window system for clearance and introduce “Know Your Approvals” for applicant industries besides bringing in a “once only” system for document submission.

The affidavit-based clearance has been extended from 15 services to 20 services, and affidavit-based clearance certification for MSMEs to three years and big industries to five years. The amendment proposed a “deemed approval” system if the applications are not cleared within the stipulated period, among many other proposals.

The Cabinet has also approved tabling of the Karnataka Gram Swaraj and Panchayat Raj (Amendment) Bill, 2026, which seeks to replace an ordinance promulgated earlier to amend the rules that deal with taxation, rates and fee.

Published - August 21, 2026 09:34 pm IST