CAG flags irregularities in Karnataka guarantee scheme, BJP slams Congress

Major irregularities have reportedly been flagged in Karnataka’s flagship Gruhalakshmi scheme, with a Comptroller and Auditor General (CAG) audit raising questions over beneficiary verification, account validation and fund disbursal mechanisms in the Rs 75,000-crore programme.

The report resulted in a major political flashpoint as the opposition BJP took a jibe at the DK Shivakumar-led Karnataka government, with BJP state president Vijayendra Yediyurappa alleging that the scheme had turned into a large-scale scam and demanding an immediate and transparent high-level investigation.

According to the audit findings, 19,020 beneficiaries were found linked to common bank accounts, triggering concerns over duplication, data-entry gaps or the possibility of ineligible beneficiaries receiving benefits under the scheme.

The report further noted that repeated deposits amounting to nearly Rs 1.80 crore were made into 8,995 bank accounts. The average repeated credit worked out to roughly Rs 2,000 per account, indicating possible duplicate instalments.

One of the most significant observations relates to beneficiary records. The audit flagged that 10.36 lakh beneficiaries had changed their bank account details. With the scheme currently covering around 1.30 crore beneficiaries, the figure translates to nearly 8 per cent of total beneficiaries. Officials reportedly indicated that some account changes may have been linked to attempts to avoid loan recoveries by banks.

The audit also raised questions over payments made despite incomplete banking information. It stated that 23,262 beneficiaries received payments even though bank account details were unavailable in records, with total disbursals in such cases amounting to 46.52 crore.

The Gruhalakshmi scheme provides monthly assistance of Rs 2,000 and has so far disbursed nearly Rs 75,000 crore across Karnataka.

The findings were discussed in a meeting chaired by the Chief Minister. Officials reportedly maintained that direct benefit transfer (DBT) payments cannot ordinarily be processed without bank account details, suggesting some discrepancies could stem from data quality or verification issues. Departments have been directed to verify the findings and identify any ineligible beneficiaries.

Other than asking for a high-level probe, Yediyurappa also questioned the functioning of the guarantee implementation committees and sought accountability over beneficiary verification and fund transfers.

The opposition leader further referred to pending concerns over delayed disbursals under the scheme and alleged that beneficiaries had not received expected payments for certain months, while demanding answers from the government.

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