No flaws in rollout, Karnataka govt clarifies amid Gruhalakshmi scheme row

Facing political heat over audit observations and allegations of irregularities in its flagship Gruha Lakshmi scheme, the Karnataka government on Thursday issued a detailed clarification, rejecting claims of large-scale fraud while admitting that benefits were credited to some deceased beneficiaries due to delays in updating official records.

The clarification came days after opposition BJP leaders cited findings linked to a Comptroller and Auditor General (CAG) review and demanded a wider investigation into the implementation of the scheme, which provides Rs 2,000 every month to women heads of households. The controversy has intensified after allegations of duplicate payments, ineligible beneficiaries and weak beneficiary verification mechanisms.

Responding to the allegations, the Women and Child Development Department said that as of April 2026, around 1.30 crore beneficiaries were registered under Gruha Lakshmi and that payments are processed only after multiple eligibility checks.

The department acknowledged that Rs 115 crore had been transferred to the accounts of 1.08 lakh deceased beneficiaries. It attributed the lapse to delays in receiving and integrating death records into the system rather than failures in payment architecture. According to the government, action has already begun to recover the amount, and Rs 15.24 crore has been recovered so far.

Officials maintained that the scheme operates through the Aadhaar-Based Payment System (ABPS), which includes screening mechanisms to exclude income tax payers, GST filers and deceased persons before fund transfers are processed.

The department also pushed back against allegations of duplicate transfers, stating that the payment system does not permit a beneficiary to receive assistance in more than one account during the same month.

The clarification comes amid an ongoing beneficiary verification exercise announced by the government after earlier concerns over leakages and misuse in welfare schemes. Karnataka has maintained that the exercise is intended to strengthen delivery and ensure benefits reach only eligible households without affecting genuine beneficiaries.

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