A storm is brewing over the Karnataka Congress government as Right to Information (RTI) documents reveal a questionable pattern of fund disbursement. The Karnataka People’s Education Society (KPES)—an institution with deep ties to AICC President Mallikarjun Kharge and his son, State Minister Priyank Kharge—has reportedly received crores of rupees in special grants, despite the Social Welfare Department itself facing a severe financial crunch.
This revelation has sparked widespread outrage, raising serious questions about conflict of interest, political favouritism, and the diversion of Scheduled Caste welfare funds to a single, politically connected society.
The lion’s share to Kharge-linked society.
Documents accessed under RTI indicate that in the financial years 2024 and 2025, the Karnataka People’s Education Society—of which both Kharges are members—received preferential and expedited grants. These funds were released under the guise of development programs for Scheduled Castes (SCs), intended for the construction of educational institutions and community infrastructure run by religious SC organizations.
Shockingly, this windfall occurred even as the Social Welfare Department reported a pending liability of Rs 230 crore to 468 other eligible institutions.
While hundreds of schools, hostels, and colleges across Karnataka awaited funds, KPES managed to secure Rs 6.31 crore in March 2024 and an additional Rs 6.80 crore in March 2025, according to internal notes from the department.
Breakdown of the sanctioned grants
The latest round of Rs 6.80 crore in March 2025 was sanctioned as a “special case”, despite the department noting no funds were available. This included:
Rs 2.30 crore for classrooms at Pragya English Medium School, Kalaburagi
Rs 91.50 lakh for classrooms at Siddhartha Law College, Kalaburagi
Rs 71.50 lakh each for toilets at Pragya School and Dr. Ambedkar Mahavidyalaya
Rs 1.65 crore for a new PG building near Dr. Ambedkar Degree College, Kalaburagi
Rs 51.15 lakh for a compound wall at Siddhartha Junior College, Bidar
A similar proposal to release Rs 3.59 crore more is currently under review, according to department sources.
Grants sanctioned despite pending misuse probe
Adding to the controversy is the revelation that Rs 51.15 lakh had earlier been sanctioned to the same society even as a Lokayukta investigation into alleged misuse of funds was ongoing.
According to departmental notes dated March 4, 2025, officials had clearly stated:
“No funds are currently available. Rs 846.65 lakh is pending for sanction. Rs 230 crore remains unpaid to previously approved institutions.”
Despite this, Social Welfare Minister H C Mahadevappa overruled objections and authorized the disbursement days later on March 7, citing “special circumstances”.
Preferential treatment to a political society?
The Karnataka People’s Education Society, headquartered in Kalaburagi, has long-standing political connections. It runs multiple institutions, including Siddhartha Composite College, Priyadarshini PU College, and Dr B R Ambedkar Degree College.
Though Mallikarjun Kharge no longer holds an official post in the society, he is its founding president and continues to be associated with it. His son, Minister Priyank Kharge, currently holds a member’s position.
The society is now headed by MP Radhakrishna Doddamani, but several Congress leaders, including Maruthi Rao D. Male, Shantappa, and Mareppa, are also listed as members.
Official guidelines bypassed?
According to state government guidelines, financial assistance for infrastructure under SC/ST schemes must go to institutions run by bona fide religious or community trusts, with strict vetting procedures and needs-based prioritisation.
However, in the case of KPES, repeated high-value grants were released without Finance Department clearance and often in violation of prescribed norms.
Critics allege that while thousands of government-aided SC institutions continue to function without basic infrastructure, a single politically-linked society is being lavished with crores, raising serious governance and ethical concerns.
Opposition slams ‘loot under Congress rule’
The revelations have prompted a strong backlash from the BJP, which has accused the Congress government of “misusing public funds for family and party interests.”
“While poor Dalit students across Karnataka are denied classrooms and toilets, the government is busy rewarding its own society with crores,” said BJP spokesperson Malavika Avinash. “This is not just favouritism it is financial abuse of SC welfare funds.” She demanded a judicial probe into all grants released to KPES since the Congress took office in 2023.
The scandal places the Siddaramaiah government in a tight spot, especially with allegations of conflict of interest, overriding departmental advice, and misappropriation of SC welfare funds. With Lokayukta investigations already pending against the Society, political observers say this controversy could deepen, especially if the Finance Department’s objections were bypassed.
