CAG Finds Irregularities in Karnataka's Gruha Lakshmi Scheme, Rs 46.52 Crore Disbursed Without Bank Details

Published 24 June 2026 · india

CAG Finds Irregularities in Karnataka's Gruha Lakshmi Scheme, Rs 46.52 Crore Disbursed Without Bank Details Published By, Last Updated: June 24, 2026, 12:51 IST CAG

CAG Finds Irregularities in Karnataka's Gruha Lakshmi Scheme, Rs 46.52 Crore Disbursed Without Bank Details Published By, Last Updated: June 24, 2026, 12:51 IST CAG flags irregularities in Karnataka Gruha Lakshmi scheme, citing shared and changed bank accounts, repeated credits and payments without bank details. AI-generated image used for representation The Comptroller and Auditor General (CAG) flagged alleged irregularities in the implementation of Karnataka’s flagship Gruha Lakshmi scheme, raising concerns over beneficiary records and Direct Benefit Transfer (DBT) payments. Over Rs 75,000 crore has been disbursed under this scheme. The Gruha Lakshmi scheme, one of the key welfare initiatives of the Congress government in Karnataka, currently covers around 1.30 crore beneficiaries. According to a CAG audit conducted by its Data Analytics Division, several discrepancies were found in the scheme’s beneficiary database and payment process.

The audit found that 19,020 beneficiaries were linked to common bank account numbers, indicating that multiple beneficiaries were associated with the same account. The report also pointed to repeated credits amounting to nearly Rs 1.80 crore across 8,995 accounts. In addition, auditors found that 10,36,308 beneficiaries had undergone multiple changes in their bank account details. One of the most significant observations in the report relates to payments made to beneficiaries without bank account information. According to the audit, Rs 46.52 crore was disbursed to 23,262 beneficiaries with no bank account details in the records. The CAG report was discussed during a meeting chaired by Chief Minister Siddaramaiah, following which the state government reportedly initiated steps to identify ineligible beneficiaries and address the issues flagged by auditors.

The audit report also alleged a lack of cooperation from the Women and Child Development Department during the audit process. According to the findings, the department did not provide certain information sought by auditors and failed to furnish documents requested in connection with the audit. The Gruha Lakshmi scheme was launched by the Karnataka government as a financial assistance programme for women heads of households. It is among the Congress government’s flagship welfare schemes and constitutes a significant component of the state’s social welfare expenditure. News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism submit About the Author News Desk The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad.