Karnataka CM Vows to Plug Loopholes in Welfare Schemes After Audit Flags Irregularities

Chief Minister D.K. Shivakumar on Friday directed officials to address loopholes in the state government's guarantee schemes, ensuring that no eligible beneficiary is denied benefits while preventing misuse. Chairing a review meeting on the implementation of the schemes, Shivakumar emphasised the need to identify ineligible beneficiaries without disrupting genuine recipients.

“Not a single eligible beneficiary should suffer. The objective is only to stop misuse and ensure benefits reach those entitled to them,” he said.

The Chief Minister expressed concern over irregularities highlighted in the Accountant General’s (AG) report, including multiple beneficiaries receiving Gruha Lakshmi assistance through a single bank account. According to the report, nearly ₹60 crore was disbursed through about three lakh instalments into accounts linked to multiple beneficiaries. The report also noted instances of individuals registering multiple accounts and inadequate verification of applications submitted during the initial phase of the scheme.

Officials informed the meeting that some Gruha Lakshmi beneficiaries had changed their bank accounts after monthly assistance was automatically adjusted towards outstanding loan repayments. Shivakumar directed officials to ensure such beneficiaries are not denied assistance due to account changes. He also asked authorities to introduce voice-message alerts to notify beneficiaries when payments are credited.

The meeting reviewed cases where Gruha Lakshmi payments continued to be transferred to accounts of deceased beneficiaries. Discussions also covered delays in obtaining death records, pending e-KYC compliance, and inactive bank or NPCI-linked accounts.

Officials reported that misuse involving UPI-linked Airtel Payments Bank accounts had been detected. Shivakumar directed authorities to take corrective measures and tighten scrutiny.

Stressing that Karnataka’s welfare schemes should benefit only eligible residents of the state, the Chief Minister expressed concern over payments being made to accounts located outside Karnataka and directed officials to prevent such leakage.

During the performance review, officials said women had undertaken 763 crore free bus journeys under the Shakti scheme till the end of May, with ticket value amounting to ₹20,047.69 crore. The government is expected to distribute around 10 lakh free bus passes to students from General, Scheduled Caste, and Scheduled Tribe communities during 2026-27.

Under the Gruha Jyothi scheme, 1.65 crore beneficiaries had availed free electricity benefits till May-end. The Chief Minister directed officials to collect information on persons from other states who had settled in Karnataka and were availing the scheme.

He also asserted that beneficiaries of government welfare schemes must have their names on electoral rolls and urged them to ensure their names remain on the voters’ list during the ongoing Special Intensive Revision.

Under the Anna Bhagya scheme, officials informed that ₹11,561.05 crore had been transferred directly to beneficiaries between July 2023 and December 2024, covering over 72 crore beneficiary transactions. Since February 2025, the government has resumed distribution of an additional 5 kg of rice every month to 4.44 crore beneficiaries.

The Chief Minister directed officials to take stringent measures against the diversion and black market sale of Anna Bhagya rice and stressed the need for stronger monitoring to ensure foodgrains reach intended beneficiaries. He also suggested that financially well-off beneficiaries willing to voluntarily surrender benefits under the guarantee schemes should be encouraged to do so.