The Karnataka Lokayukta on Tuesday conducted raids and registered a case against officials of the Karnataka Slum Development Board and a private contractor for alleged large-scale irregularities and fake billing in the Pradhan Mantri Awas Yojana (Urban) – 2022 in Ramdurg town of Belagavi district.
Simultaneous Raids Across Multiple Locations
Lokayukta teams carried out simultaneous raids at several locations, including Slum Board offices in Hindalga (Belagavi), the residence of Shambulingappa in Hubballi, the NPCC office in Bengaluru, and the residences of accused persons such as Girimallappa Jogur, Kiran Hosakoti, and Rindanagouda Shekargouda Patil in Vijayapura and Bagalkot districts. Officials confirmed that crucial documents were seized and further investigation is underway.
Preliminary Findings Reveal Collusion
Preliminary probe indicates that officials colluded with the contractor to generate fake work bills, despite houses not being constructed for beneficiaries in notified slum areas under the ‘Housing for All’ scheme. These fabricated bills were processed through official channels and cleared for fund release. The accused include retired Assistant Executive Engineer Shambulingappa B.S. and contractor Prasad N.P. of National Projects Construction Corporation Ltd, along with other officials involved in the process.
Investigators found serious procedural lapses, including failure to conduct proper field inspections and absence of GPS-based photographic evidence. Works were falsely shown as completed, enabling fraudulent payments.
Financial Misappropriation
Records show that 13 partial bills were submitted between March 29, 2019, and June 12, 2023, leading to disbursal of Rs 29.4 crore between April 2019 and November 2024. Officials stated that materials worth about Rs 6.1 crore were supplied to nearly 600 beneficiaries, while an excess amount of around Rs 23.3 crore was allegedly misappropriated.
Legal Proceedings
A case has been registered by Lokayukta SP Prasanna Desai, and the probe is being led by Inspector Venkatesh Yadahalli. The investigation is ongoing, and further arrests are anticipated as more evidence emerges.
