Bengaluru: A major political storm has erupted in Karnataka after the Comptroller and Auditor General (CAG) reportedly flagged suspected irregularities worth nearly ₹225 crore in the Congress government’s flagship Gruha Lakshmi scheme, prompting the Bharatiya Janata Party (BJP) to demand a comprehensive probe by the Central Bureau of Investigation (CBI).
Calling the alleged irregularities a “state-sponsored cybercrime,” Leader of the Opposition R. Ashoka urged the Centre to entrust the investigation to the CBI along with central cybercrime agencies, alleging that the large-scale discrepancies could not have occurred without systematic manipulation of beneficiary records and software systems.
Addressing reporters, Ashoka claimed the audit findings exposed serious lapses in the implementation of the welfare scheme, which provides ₹2,000 every month to eligible women across Karnataka.
While honest citizens face new tax burdens, the @INCKarnataka government has orchestrated a massive scam right under our noses.
The CAG audit explicitly flagged financial irregularities to the tune of ₹225 Crore in the Gruha Lakshmi guarantee scheme.
Now, facing intense… pic.twitter.com/BjJLmnW0GC
— R. Ashoka (@RAshokaBJP) June 26, 2026
“The CAG has unearthed irregularities amounting to nearly Rs 225 crore. This is not merely an administrative lapse but appears to be a well-organised fraud. A CBI investigation is necessary to identify who manipulated the beneficiary database, who authorised the transfers and who ultimately benefited from these transactions,” Ashoka said.
BJP state president BY Vijayendra also demanded a transparent and independent investigation, alleging that the Gruha Lakshmi scheme had turned into one of the biggest welfare scams in the state. He said those responsible for beneficiary verification, software management and fund transfers should be held accountable.
ಗೃಹಲಕ್ಷ್ಮಿ ಯೋಜನೆಯಲ್ಲಿ ಅಕ್ರಮಗಳಾಗಿವೆ, ಸಾವಿರಾರು ಅಕ್ರಮ ಖಾತೆಗಳಿಗೆ ಕೋಟ್ಯಂತರ ರೂಪಾಯಿ ಹಣ ಪಾವತಿಸಲಾಗಿದೆ. ಗ್ಯಾರಂಟಿ ಅನುಷ್ಠಾನ ಸಮಿತಿಗೆ 150 ಕೋಟಿ ಖರ್ಚು ಮಾಡುತ್ತಿರುವುದು ನಿರರ್ಥಕ. ಇದರ ಮೇಲೆ ಗ್ಯಾರಂಟಿಗಳಿಗೆ ಮರು ಅರ್ಜಿ ಸಲ್ಲಿಸುವ ನಾಟಕ ಆರಂಭಿಸಿದೆ. ಒಟ್ಟಾರೆಯಾಗಿ ಕಾಂಗ್ರೆಸ್ ಗ್ಯಾರಂಟಿಗಳಲ್ಲಿ ಗೋಲ್ಮಾಲ್ ಆಗುತ್ತಿದೆ.… pic.twitter.com/jm6lj4CnU9
— R. Ashoka (@RAshokaBJP) June 25, 2026
According to the CAG audit covering the financial years 2023-24 and 2024-25, around Rs 116 crore was transferred through 5.79 lakh instalments into bank accounts linked to 1.08 lakh beneficiaries who had died after the launch of the scheme. The audit noted that although nearly 2.88 lakh beneficiaries died during the audit period, eligible replacement beneficiaries from the same families were enrolled in only 1.03 lakh cases, raising serious questions over monitoring and verification mechanisms.
The audit also reportedly found that records relating to 77,376 deceased beneficiaries were not made available for verification. The CAG sought clarification from the Women and Child Development Department on whether payments continued after the beneficiaries’ deaths and why adequate safeguards had failed.
Another major concern highlighted in the audit involved 19,020 beneficiaries linked to common bank accounts. These accounts reportedly received over Rs 60.70 crore through more than 3.03 lakh transactions, raising questions about how multiple beneficiaries were permitted to use the same account for receiving government benefits.
Further, the audit reportedly identified disbursements amounting to Rs 46.52 crore where neither beneficiary details nor bank account information was available in the department’s database. The CAG directed the department to identify the recipients and explain how such payments were processed without proper records.
The audit also pointed to irregularities in bank account management. Out of nearly 1.23 crore beneficiaries covered under the scheme, over 10 lakh beneficiaries were found to have multiple bank accounts. In several cases, payments were allegedly routed to different accounts belonging to the same beneficiary, while others repeatedly changed account details before reverting to earlier accounts. Bengaluru alone accounted for more than 1.15 lakh beneficiaries with multiple bank accounts.
The auditor further identified duplicate payments amounting to nearly ₹1.80 crore credited to 8,995 bank accounts, indicating possible repeated disbursal of instalments.
Ashoka alleged that the irregularities came to light only after the CAG conducted a detailed data dump analysis of the department’s records.
“The fraud was exposed through data analysis rather than routine departmental verification. It appears that software algorithms and beneficiary records were manipulated to divert public money into accounts of deceased beneficiaries and facilitate repeated transfers into the same accounts. This raises serious concerns over cyber manipulation within the system,” he alleged.
He also questioned why records of more than 77,000 deceased beneficiaries had not been produced before the auditors, asking whether attempts were being made to alter or erase digital records linked to those accounts.
Emphasising the seriousness of the issue, the BJP demanded that the CBI investigate the role of officials, software vendors, data operators and any intermediaries involved in processing the payments.
KPCC president B.K. Hariprasad said the government had begun revising beneficiary records after identifying suspicious entries during a preliminary review.
“Some people have misused the system in the names of persons who are no longer alive or those who have shifted their addresses. That is why the Chief Minister has ordered a comprehensive revision of beneficiary records,” Hariprasad said.
The Women and Child Development Department has reportedly been directed to submit a detailed compliance report to the CAG explaining the discrepancies flagged during the audit. However, with the BJP intensifying its demand for a CBI probe, the alleged irregularities in the Gruha Lakshmi scheme are expected to trigger a major political confrontation in the coming days.
