 "Karnataka super-rich club includes Vidhan Soudha")
If the newly-elected Karnataka Assembly were a corporation, it would be within a striking distance of the billion-dollar club on its inaugural day itself. The combined net worth of 218 legislators elected to the Vidhan Soudha is Rs 5,133.7 crore, according to data by Karnataka Election Watch (KEW).
The data is based on MLAs’ affidavit and nomination papers. The previous Assembly, elected in 2008, was not even half as rich, with a combined net worth of Rs 2,180 crore. Four out of 10, or 42 per cent, of the sitting members of the legislative assembly (MLAs) were re-elected in 2013.
Many Karnataka MLAs are among the richest in the state. There are 12 billionaires (net worth of Rs 100 crore and above) in the current Assembly, with a combined net worth of nearly Rs 3,000 crore. The next 12 MLAs are only a fifth as rich, with a combined net worth of Rs 672 crore, showing the bulk of the wealth is concentrated among the top few (see table).
Wherever possible, the value of promoter stake for companies belonging to same business group has been combined. The analysis excludes government-owned companies, subsidiaries of foreign companies located in Karnataka and companies from prominent business groups headquartered in Bangalore. Some of the companies in the latter category include Titan Industries (Tata Group) and Britannia Industries (Wadia Group).
The newly-elected MLAs are not very far behind the corporate honchos in terms of income. According to the KEW data, 10 MLAs have an annual income of Rs 3 crore and above. In comparison, there are just 13 chief executive officers (CEOs) in the state — most of them based out of Bangalore — whose annual income was Rs 3 crore or higher in FY12.
Top-earning MLAs draw much more than their corporate peers. Congressman N A Haris, elected from Shanti Nagar, declared an income of Rs 50 crore, nearly seven times that of G M Rao, executive chairman of GMR Infrastructure Ltd, and Bangalore’s highest-earning executive. Rao earned a total remuneration of Rs 7.54 crore in FY12. In all, four Karnataka MLAs have an annual income of Rs 10 crore and above, but there are no executives in the state in that income bracket.
A typical businessman is, however, wealthier than MLAs in Vidhan Soudha. The median net worth of a promoter of a listed company is Rs 10 crore, while the promoter of an unlisted firm is worth Rs 14 crore. In contrast, the median networth of a legislator in the new Assembly is Rs 5.5 crore, indicating that majority of the businessmen in the sample own more assets than legislators.
The richest businessman from Karnataka is Azim Premji, with a net worth of Rs 68,000 crore followed by the five promoters of Infosys — a combined networth of nearly Rs 22,000 crore. In the unlisted space, V G Siddhartha, owner-promoter of Coffee Day, is at the top with a net worth of Rs 1,100 crore. In comparison, the richest politician, Priya Krishna, elected on a Congress ticket, has a net worth of Rs 911 crore.
Most of the super-rich politicians have made their fortunes through real estate, mining or the booming retail business in the state. Congressman Krishna is in real estate, while D Shivakumar, the fourth richest with wealth of Rs 252 crore, is into iron-ore trading and granite quarrying. Another congressman Santosh Lad, net worth of Rs 186.4 crore, has interest in iron-ore mining.
ln all, eight out of the 10 wealthiest MLAs belong to the Congress, which has ruled the state for most of the post-independence period. According to observers, this makes the Congress the preferred choice for the nouveau riche wanting to use their wealth for gaining a foothold in politics.
The data is based on MLAs’ affidavit and nomination papers. The previous Assembly, elected in 2008, was not even half as rich, with a combined net worth of Rs 2,180 crore. Four out of 10, or 42 per cent, of the sitting members of the legislative assembly (MLAs) were re-elected in 2013.
Many Karnataka MLAs are among the richest in the state. There are 12 billionaires (net worth of Rs 100 crore and above) in the current Assembly, with a combined net worth of nearly Rs 3,000 crore. The next 12 MLAs are only a fifth as rich, with a combined net worth of Rs 672 crore, showing the bulk of the wealth is concentrated among the top few (see table).
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The number of 12 billionaires is large, considering that companies based in the state have 61 such promoters and industrialists, according to Capitaline database. The analysis is based on the latest market value of promoters’ stake in Karnataka-based listed companies and the net worth of unlisted companies with their registered office in the state.
Wherever possible, the value of promoter stake for companies belonging to same business group has been combined. The analysis excludes government-owned companies, subsidiaries of foreign companies located in Karnataka and companies from prominent business groups headquartered in Bangalore. Some of the companies in the latter category include Titan Industries (Tata Group) and Britannia Industries (Wadia Group).
The newly-elected MLAs are not very far behind the corporate honchos in terms of income. According to the KEW data, 10 MLAs have an annual income of Rs 3 crore and above. In comparison, there are just 13 chief executive officers (CEOs) in the state — most of them based out of Bangalore — whose annual income was Rs 3 crore or higher in FY12.
Top-earning MLAs draw much more than their corporate peers. Congressman N A Haris, elected from Shanti Nagar, declared an income of Rs 50 crore, nearly seven times that of G M Rao, executive chairman of GMR Infrastructure Ltd, and Bangalore’s highest-earning executive. Rao earned a total remuneration of Rs 7.54 crore in FY12. In all, four Karnataka MLAs have an annual income of Rs 10 crore and above, but there are no executives in the state in that income bracket.
A typical businessman is, however, wealthier than MLAs in Vidhan Soudha. The median net worth of a promoter of a listed company is Rs 10 crore, while the promoter of an unlisted firm is worth Rs 14 crore. In contrast, the median networth of a legislator in the new Assembly is Rs 5.5 crore, indicating that majority of the businessmen in the sample own more assets than legislators.
The richest businessman from Karnataka is Azim Premji, with a net worth of Rs 68,000 crore followed by the five promoters of Infosys — a combined networth of nearly Rs 22,000 crore. In the unlisted space, V G Siddhartha, owner-promoter of Coffee Day, is at the top with a net worth of Rs 1,100 crore. In comparison, the richest politician, Priya Krishna, elected on a Congress ticket, has a net worth of Rs 911 crore.
Most of the super-rich politicians have made their fortunes through real estate, mining or the booming retail business in the state. Congressman Krishna is in real estate, while D Shivakumar, the fourth richest with wealth of Rs 252 crore, is into iron-ore trading and granite quarrying. Another congressman Santosh Lad, net worth of Rs 186.4 crore, has interest in iron-ore mining.
ln all, eight out of the 10 wealthiest MLAs belong to the Congress, which has ruled the state for most of the post-independence period. According to observers, this makes the Congress the preferred choice for the nouveau riche wanting to use their wealth for gaining a foothold in politics.