BENGALURU: Karnataka BJP President BY Vijayendra on February 14 levelled serious allegations against the Congress-led state government, accusing it of diverting Rs 1,323.96 crore of Central special grants and submitting fake utilisation certificates to the Union Government.
Addressing a press conference at the BJP state office in Malleswaram, Vijayendra released what he described as documentary evidence to substantiate the claims. He alleged that the state government had failed to transfer Central special grants to the respective departments for which they were sanctioned and instead diverted the funds for other purposes.
“The Central Government releases special grants to states in phases, subject to submission of progress and utilisation reports. However, in Karnataka, the departments concerned never received the funds. Despite this, fake utilisation certificates were allegedly submitted to the Centre,” Vijayendra charged.
Terming the act both a “misuse of funds” and a potential “criminal offence,” he said the diversion of funds undermines federal trust and violates financial discipline. According to him, the grants meant for specific development works were rerouted, and fabricated documentation was created to show compliance.
Vijayendra also questioned the alleged diversion of funds for the Gruha Lakshmi scheme, asking where the Rs 5,000 crore meant for beneficiaries had gone. “Two months’ dues are pending under Gruha Lakshmi. Where did Rs 5,000 crore go? Was there corruption? The Chief Minister must answer,” he said.
He demanded that Chief Minister Siddaramaiah and Deputy Chief Minister provide an immediate clarification on the allegations, particularly regarding the submission of fake utilisation certificates in connection with Central grants.
According to Vijayendra, departments such as the Minor Irrigation Department, the Scheduled Tribes Development Corporation, Krishna Bhagya Jala Nigam, and Visvesvaraya Jala Nigam were allegedly pressured by the Finance Department to submit utilisation certificates even though they had not received the actual funds.
He cited the example of the Scheduled Tribes Development Corporation, which reportedly received Rs 273 crore as part of the special grant allocation. Of this, utilisation certificates worth Rs 132 crore were allegedly submitted at the behest of the Finance Department. Vijayendra questioned whether these were “fake certificates” or documents issued under pressure.
“These actions amount to grave injustice to all sections of society. The government did not release funds to departments but compelled them to show expenditure on paper. This is not just administrative negligence — it is a betrayal of public trust,” he said.
He further alleged that instead of accepting administrative failures, the state government has been shifting blame onto the Centre to cover up its own shortcomings. “This government is accusing the Centre to hide its inefficiency and corruption. But the documents we have released clearly show diversion and falsification,” he claimed.
Vijayendra asserted that if proven true, the allegations represent a serious breach of financial propriety and transparency. He warned that the BJP would intensify its agitation if satisfactory explanations were not provided.
“The Chief Minister and Deputy Chief Minister must answer whether Central special grants were diverted and whether fake utilisation certificates were submitted. The people of Karnataka deserve clarity,” he said.
The state government has not yet issued a detailed response to the charges. However, the allegations have escalated political tensions, with the BJP framing the issue as a major financial scandal that questions the integrity of the Congress administration.
