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

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A presumption    of the Lokayukta bureau   successful  Bengaluru, Karnataka.

A presumption of the Lokayukta bureau successful Bengaluru, Karnataka. | Photo Credit: PTI

The Lokayukta has registered a lawsuit against officials of the Karnataka Slum Development Board and a backstage contractor for allegedly causing a nonaccomplishment of implicit ₹23.35 crore to the authorities done irregularities successful lodging works taken up nether the Pradhan Mantri Awas Yojana (Urban)-2022 strategy successful Belagavi district.

According to the complaint, large-scale irregularities were allegedly committed successful PMAY lodging projects executed successful the notified slum areas of Ramdurg municipality successful Belagavi district. Officials allegedly prepared fake bills and records successful collusion with contractors contempt respective houses not being afloat constructed.

The probe revealed that though astir 600 houses were allegedly incomplete, officials certified the works arsenic completed and released payments by creating mendacious inspection reports and fabricated GPS-based photographic records.

The Lokayukta officials said a full of ₹29.45 crore was released to the contractor betwixt April 2019 and November 2024 done 13 bills and related approvals.

A preliminary enquiry reportedly recovered that alternatively of constructing implicit houses for beneficiaries, lone operation materials worthy astir ₹6.10 crore were supplied, portion authorities funds amounting to astir ₹23.35 crore were allegedly misappropriated successful collusion with officials and contractors.

Based connected the findings, the Lokayukta registered a lawsuit against retired Assistant Executive Engineer Shambulingappa B.S. and contractor Prasad N.P. of National Projects Construction Corporation Limited, on with others.

On May 19, Lokayukta teams conducted simultaneous raids astatine aggregate locations linked to the accused, including authorities offices, residences of officials and contractors, and the bureau of NPCC successful Bengaluru. Several documents related to the alleged scam were seized during the searches.

Published - May 19, 2026 10:12 p.m. IST

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