Bengaluru: In a serious embarrassment, Karnataka govt has ordered a probe into 2025 tendering irregularities at Hutti Gold Mines Co Ltd, the only active gold-producing unit in the country.The secretary of the commerce and industries department ordered the probe in late Feb into the tendering process at HGML, owned by Karnataka govt. Its chairman is JT Patil is a Congress MLA. Hutti mines are in Raichur district.Bids had been called for purchase of forged steel grinding balls, a basic component to grind materials into fine powders, essential for efficient processing and production.Two key allegations under probe are: Tendering process was redefined midway through disqualifying bidders, and a second modification kept bidders from some countries out of the process.Calling the controversy “not major”, Patil told TOI the tendering process is being set right. He said a meeting of HGML board will take place in the second week of April soon after bypolls to Bagalkot and Davangere assembly constituencies are completed.“The investigation was ordered based on some changes made in the tender conditions by local officials. It is not a big problem. The technical committee has submitted its report. Based on it we will take further action,” Patil added.A three-member technical panel led by Mallikarjun N, head of mechanical engineering department, SJ Government Polytechnic, is looking into the “unauthorised modifications to the tender conditions, and the resulting violations of the Karnataka Transparency in Public Procurement (KTPP) Act” and suggest remedial measures and administrative due diligences to overcome discrepancies for the smooth functioning of the company.The genesis of the probe began with a tender being called for the purchase of forged steel grinding balls on July 1 2025. Following the receipt of bids by bidders (4 bidders for 125 mm and 6 bidders for 65 mm), the technical evaluation was purportedly completed on Sept 18, 2025.“However, it is observed that the HGML failed to conduct evaluation in accordance with prescribed procedures, arbitrarily disqualifying all participating vendors on the same day,” noted the secretary, adding that the earnest money deposit (EMD) of all the bidders were refunded prematurely within a single day of the tender cancellation.Acting on the appeal of the bidders, revisional authority passed an order on Nov 14, 2025, directing the tender accepting authority to “adopt a comprehensive and suitably calibrated approach to document scrutiny in future tenders, ensuring both substantive capability and compliance requirements are duly appreciated”.Based on this, and the nature of the requirement for uninterrupted operations to draw gold, HGML was asked to call for a fresh tender on Feb 3, 2026.Even in this fresh tender, the department found that “due diligence and proper application of mind did not appear to have been exercised”.The govt found that HGML had modified the tender clauses to impose “new restrictions on public procurement from bidders of certain countries, necessitating the registration of a land border sharing declaration certificate”.The clause was considered as one without recording cogent reasons or proper justification which effectively forbid early participants from taking part in the new bidding process.A communication by the chairman of HGML which requested an amendment to waive these newly imposed restrictive clauses, was questioned by the govt and cited “deep inconsistencies in the company’s administrative approach”.TOI, in possession of a letter dated Nov 11, 2025 written by Patil, was informed by other bidders that two bidders were favoured by the company leadership and the revisional authority.
