The Bharatiya Janata Party on Thursday demanded a Central Bureau of Investigation inquiry after the Comptroller and Auditor General (CAG) identified suspected irregularities worth ₹225 crore in the state’s flagship Gruha Lakshmi welfare scheme, including payments to deceased beneficiaries, duplicate bank accounts and gaps in beneficiary records.
Leader of Opposition R Ashoka described the alleged fraud as “state sponsored cybercrime” and called for an investigation by the CBI and central cybercrime agencies. BJP state president Vijayendra Yediyurappa also sought a transparent, high level inquiry, alleging that the programme had turned into a large scale scam and seeking accountability for beneficiary verification and fund transfers.
The audit, covering the scheme’s implementation in 2023-24 and 2024-25, found that ₹116 crore was transferred through 5.79 lakh instalments into the accounts of 1.08 lakh beneficiaries who had died after the scheme began. The CAG said 2.88 lakh beneficiaries died during the audit period, but replacement beneficiaries from the same families were registered in only 1.03 lakh cases.
The auditor also found that records relating to 77,376 deceased beneficiaries had not been provided by the department and sought an explanation on whether payments continued after their deaths and why safeguards failed to prevent the omission.
The CAG identified 19,020 beneficiaries linked to common bank accounts that received ₹60.70 crore through 3.03 lakh payments, raising questions over how multiple beneficiaries could share the same account.
It further found that ₹46.52 crore had been disbursed without beneficiary or bank account details being recorded in the database and asked the Women and Child Development Department to identify the recipients and explain how such payments were processed.
Among the scheme’s 1.23 crore beneficiaries, the audit found that 10.06 lakh had more than one bank account. In some instances, payments were made to multiple accounts belonging to the same beneficiary, while others repeatedly changed their account details before reverting to earlier accounts. Bengaluru alone accounted for 1.15 lakh beneficiaries with multiple accounts.
The audit also identified repeated deposits amounting to nearly ₹1.80 crore into 8,995 bank accounts, suggesting duplicate instalments.
The Gruha Lakshmi scheme provides eligible women with ₹2,000 every month and has disbursed around ₹75,000 crore since its launch.
The CAG informed the Women and Child Development Department of its preliminary findings after analysing beneficiary data through data dump software. In a communication to the department, it said, “Despite writing a letter several months ago to provide an explanation in this regard, you are showing negligence by not submitting a report.” The department’s secretary subsequently instructed subordinate officers to submit a compliance report immediately.
Ashoka alleged that beneficiary records and software algorithms had been manipulated to route money into accounts belonging to deceased beneficiaries and to facilitate repeated transfers to the same accounts. “The irregularities surfaced through a data dump analysis of departmental records rather than routine verification. Software algorithms had been manipulated to transfer money to accounts belonging to deceased beneficiaries and to facilitate repeated payments into the same bank accounts,” he said.
He further questioned why records relating to 77,376 deceased beneficiaries had not been produced before auditors, asking whether efforts were being made to alter or erase cyber logs connected to those accounts. He called for investigators to trace the IP addresses from which the alleged manipulation was carried out and identify the network through which funds were allegedly diverted.
The Karnataka government has not yet responded to the latest allegations.
KPCC president BK Hariprasad said the government was reviewing beneficiary records. “Some people have misused the system in the name of people who are no longer in this world, people who have changed their address. That is why the chief minister has said they will revise the beneficiaries,” he said.
