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

A view of the Lokayukta office in Bengaluru, Karnataka. | Photo credit: PTI

The Lokayukta has registered a case against Karnataka Slum Development Board officials and a private contractor for allegedly causing a loss of over ₹23.35 crore to the government due to irregularities in housing works 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 implemented in notified slum areas of Ramdurg town in Belagavi district. Officials allegedly prepared fake bills and records in collaboration with contractors, even though several houses were not completely built.

The investigation revealed that although nearly 600 houses were said to be unfinished, officials certified the works as completed and released payments by creating fake inspection reports and fabricating GPS-based photographic records.

Lokayukta officials said that between April 2019 and November 2024, a total of ₹29.45 crore was released to contractors through 13 bills and related approvals.

A preliminary investigation has reportedly found that instead of constructing complete houses for the beneficiaries, only construction materials worth about ₹6.10 crore were supplied, while government funds of about ₹23.35 crore were allegedly misappropriated in collusion with officials and contractors.

Based on these findings, the Lokayukta registered a case against retired Assistant Executive Engineer Shambulingappa BS and contractor Prasad NP of National Projects Construction Corporation Limited, along with others.

On May 19, Lokayukta teams conducted simultaneous raids at multiple locations linked to the accused, including government offices, residences of officials and contractors, and the NPCC office in Bengaluru. Several documents related to the alleged fraud were seized during the searches.

Published – 19 May 2026 22:12 IST