In re: News report about a legislator demanding a 40% cut for a ₹50 Lakh project in Rajasthan 

A demand for 40% commission is PERVERSE. 

Commission for award of contracts INCLUSIVE of tendering SHOULD NOT BE MORE THAN 15% & should cover everyone: politicians, officers & consultants. Of course in addition to that RUNNING MONEY of 2-3% can be charged for release of payments.