Relief for Rahul Gandhi: Karnataka High Court Quashes ‘40% Commission’ Defamation Case

In a significant legal victory for Congress leader Rahul Gandhi, the Karnataka High Court on Tuesday, February 17, 2026, quashed criminal defamation proceedings against him. The case was related to the controversial “40% commission” advertisements released before the 2023 Karnataka Assembly elections.

Justice Sunil Dutt Yadav, while allowing Gandhi’s petition, stated that continuing the proceedings would be an “abuse of the process of law.” As a result, the court set aside all proceedings against the Congress leader.

Origins of the Case

The legal battle began when BJP leader Keshav Prasad filed a complaint against Rahul Gandhi, Karnataka Chief Minister Siddaramaiah, and Deputy Chief Minister DK Shivakumar.

The BJP claimed that Congress campaign materials falsely accused their government of being a “40% sarkar.” The ads alleged that the state government, then led by Basavaraj Bommai, demanded a 40% commission or bribes from contractors for public works.

The “PayCM” Campaign

The defamation suit centered on the high-profile “PayCM” campaign. This campaign featured posters with a QR code and a design similar to the popular payment app, Paytm. When scanned, the code redirected users to a website detailing alleged scams and corruption under the BJP administration.

The BJP argued that these advertisements were “baseless and reckless,” aimed at damaging the party’s reputation before the polls.

Key Legal Arguments

Rahul Gandhi’s legal team argued that the advertisements were a critique of the government’s administration rather than personal attacks. They highlighted several points:

Lack of Evidence: There was no prima facie proof that Gandhi personally issued or circulated the advertisements.
Legal Standing: The defense argued that a political party cannot file a defamation case for the criticism of a government’s administration.
Free Speech: The statements fell under the exceptions of Section 499 of the IPC, which protects comments made in good faith about public servants.

A Long Legal Road

This verdict marks the end of a long process for the Congress leaders. In June 2024, a Magistrate court had granted bail to Siddaramaiah, DK Shivakumar, and Rahul Gandhi after they appeared in person. While the High Court had stayed the proceedings in January 2025, today’s ruling officially clears Rahul Gandhi of the charges.

Political Reactions

The “40% commission” allegation was a central theme of the 2022-2023 election cycle. During his Bharat Jodo Yatra, Gandhi often asked voters if they would call a leader who takes “40% of your money” a patriot or a thief.

While Union Home Minister Amit Shah had previously dismissed the claims as “baseless allegations” without evidence, the High Court’s decision to quash the case provides a major boost to the Congress party’s legal standing regarding its past campaign strategies.

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