Lokayukta raids in PMAY scam; officials, contractor accused of ₹23.35 crore fraud in Karnataka

Key points

• The Lokayukta has registered a case against officials of the Karnataka Slum Development Board and a private contractor for allegedly causing a loss of over ₹23.35 crore to the government through irregularities in housing works taken up under the Pradhan Mantri Awas Yojana (Urban)-2022 scheme in Belagavi district.
• According to the complaint, large-scale irregularities were allegedly committed in PMAY housing projects executed in the notified slum areas of Ramdurg town in Belagavi district.
• Officials allegedly prepared fake bills and records in collusion with contractors despite several houses not being fully constructed.
• The investigation revealed that though nearly 600 houses were allegedly incomplete, officials certified the works as completed and released payments by creating false inspection reports and fabricated GPS-based photographic records.
• The Lokayukta officials said a total of ₹29.45 crore was released to the contractor between April 2019 and November 2024 through 13 bills and related approvals.