Karnataka Lokayukta stunned as former outsourced worker with ₹15,000 monthly wages found having assets worth ₹100 crore

In a startling revelation that has rocked Karnataka’s anti-corruption establishment, the Lokayukta police have uncovered assets worth over ₹100 crore allegedly owned by a former outsourced worker who earned a modest ₹15,000 per month before being dismissed six months ago.

The accused, Kalakappa Nidagundi, had been serving at the Karnataka Rural Infrastructure Development Limited (KRIDL) sub-divisional office in Nelogipura, Koppal, in an assistant role. On Friday (August 1, 2025), Lokayukta officials conducted raids on multiple properties linked to him as part of an ongoing investigation into a massive corruption racket involving fake bills, misuse of funds, and forgery of official signatures in connection with over 108 government projects.

Searches held at six locations

The raids were carried out under the supervision of Deputy Superintendent of Police (Lokayukta) Vasanth Kumar following a case registered at the Koppal Lokayukta police station under sections of the Prevention of Corruption Act and the Indian Penal Code, including criminal conspiracy, forgery, and cheating. Searches were conducted at six locations, including offices of KRIDL and residences of the accused.

Though Kalakappa held a low-level position, investigators were stunned to discover that he and his family had amassed an astonishing array of properties. The list includes 24 residential buildings, four plots, and 40 acres of agricultural land. Further, officials found documents relating to multiple bank accounts, 350 grams of gold ornaments, 1.5 kilograms of silver jewellery, two motorcycles, and two cars. Several of the properties were registered not only in Kalakappa’s name but also in the names of his wife, her brother, and his other relatives suggesting an elaborate web of benami transactions.

Public funds for infra works siphoned off

The investigation has revealed that during his tenure with KRIDL, Kalakappa, along with executive engineer Z.M. Chincholikar, allegedly manipulated project records to siphon off public funds meant for infrastructure works across Koppal district.

These included construction and development of cement concrete roads, pilgrims’ accommodations, drainage systems, solar lamp installations, toilets, hostels for boys and girls, Anganwadi centres, horticulture facilities, AYUSH hospital buildings, tourist amenities, viewing galleries, rest houses and other projects funded by departments such as the District Panchayat, Social Welfare, Women and Child Development, Minority Welfare, Agriculture, and the Tribal Welfare Corporation.

Massive blow to exchequer

Authorities allege that many of the projects were either never executed, left incomplete, or implemented without any approved project plans. The duo reportedly created fake utilisation bills and forged the signatures of senior officials to fabricate execution documents. Without securing either technical or administrative approvals, they managed to get more than ₹72 crore sanctioned and drawn, thereby causing a massive loss to the State exchequer.

As part of the probe, Lokayukta teams also searched KRIDL offices in Koppal and seized several official records related to the suspicious works. These documents are now under scrutiny.

Kalakappa, who was removed from service just six months ago, is believed to have continued manipulating systems and processes for personal gain even after his dismissal.

The officials said that the further investigation was underway, and legal action would be initiated based on the findings.