Karnataka Puts Controversial Reservation Bill for Kannadigas on Hold Amid Backlash

The Karnataka government has put on hold a controversial bill mandating reservation for Kannadigas in private firms following critical backlash from business leaders and tech industry veterans. The bill aimed at reserving jobs for locals in both management and non-management categories. Further discussions will take place before any final decision is made.

The Karnataka government on Wednesday put the reservation bill for Kannadigas in private firms on hold amid fierce criticism from business leaders and tech tycoons.

The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, cleared by the state Cabinet on Monday, was expected to be tabled in the assembly on Thursday.

However, a statement issued by the Office of the Chief Minister on Wednesday said that the bill has been temporarily put on hold and will be revisited in the coming days.

Earlier, Karnataka Chief Minister Siddaramaiah posted on X, noting that the bill is still in the preparation stage and a final decision will be taken after comprehensive discussion in the next cabinet meeting. The bill mandates that 50 percent of local candidates be appointed in management categories and 70 percent in non-management categories in any industry, factory, or other establishment.

Industry leaders reacted strongly to the proposed quota, labeling it as 'fascist' and 'short-sighted.' TV Mohandas Pai, former CFO of Infosys, called the bill 'regressive,' while Biocon MD Kiran Mazumdar Shaw warned that it could hurt Karnataka's status as a tech hub. ASSOCHAM's Karnataka co-chairman R K Misra also criticized the move, saying it would scare away Indian IT and GCCs.

Karnataka's bill is reminiscent of a similar one introduced by the Haryana government, which was struck down by the Punjab and Haryana High Court.

(With inputs from agencies.)