PMAY scam: Lokayukta raids expose Rs 29 crore fake billing in Belagavi

Belagavi: The Karnataka Lokayukta on Tuesday conducted raids after registering 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.

Lokayukta teams carried out simultaneous raids at multiple 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 said crucial documents were seized and further investigation is under way.

Preliminary probe indicates 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 BS and contractor Prasad NP 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.

Records show 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 Nov 2024. Officials said 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.

A case has been registered by Lokayukta SP Prasanna Desai, and the probe is being led by inspector Venkatesh Yadahalli.