Karnataka BJP MLA Madal Virupakshappa resigned as Chairman of the Karnataka Soaps and Detergents Limited on Friday, March 3 after his son was arrested while accepting a bribe of Rs 40 lakh from the Lokayukta or anti-corruption body in the state. The Lokayukta officials arrested Prashanth Madal, the son of the BJP lawmaker when he accepted the bribe at the MLA’s office.. During the raid at the MLA’s office, the officials also found unaccounted cash worth Rs 2.2 crore besides the bribe amount. The officials also raided Prashanth’s house in Dollars Colony in Bengaluru and seized Rs 6.1 crore. Madal Virupakshappa's son Prashanth served as the Chief Accountant of the Bengaluru Water Supply and Sewerage Board (BWSSB).

The MLA from Channagiri in Davangere resigned from his position following the arrest. “I have nothing to do with the Lokayukta raids and that it's a conspiracy against me and my family. Despite this, because I have been blamed, I am resigning as it is my moral responsibility,” the MLA stated in his resignation letter to the Karnataka Chief Minister Basavaraj Bommai. KSDL is a government owned company which manufactures a range of products including soaps, detergents and cosmetics. One of the most popular products of KSDL is Mysore Sandal Soap, which is made using sandalwood oil and is known for its fragrance. 

According to Lokayukta Chief Justice BS Patil, the bribe was meant for the MLA and the son was accepting it on his behalf. The raid was organised after a complaint by the person from whom Prashanth had demanded the bribe for tender. Following the raids, Congress demanded the resignation of Chief Minister Basavaraj Bommai. Meanwhile, Bommai stated that those found guilty must be punished.