Belagavi | May 20, 2026
The Karnataka Lokayukta on Tuesday carried out raids across multiple locations after uncovering an alleged Rs 29 crore fake billing scam linked to the Pradhan Mantri Awas Yojana (Urban) housing scheme in Ramdurg town of Belagavi district.
Source : https://timesofindia.indiatimes.com/city/hubballi/pmay-scam-lokayukta-raids-expose-rs-29-crore-fake-billing-in-belagavi/articleshow/131206309.cms
The case involves officials of the Karnataka Slum Development Board and a private contractor accused of generating fake work bills for houses that were reportedly never constructed under the ‘Housing for All’ scheme.
Raids Conducted Across Karnataka
Lokayukta teams conducted simultaneous searches at several locations, including:
- Slum Development Board offices in Hindalga, Belagavi
- Residences of accused officials in Hubballi, Vijayapura and Bagalkot
- NPCC office in Bengaluru
Officials said important documents related to billing, fund transfers and project approvals were seized during the operation.
Fake Bills and Missing Inspections
According to investigators, the accused allegedly colluded to create fabricated work completion bills despite no actual construction work being carried out in notified slum areas.
The probe revealed major procedural violations, including:
- No proper field inspections
- Absence of GPS-based photographic evidence
- False reporting of completed housing projects
- Clearance of fraudulent bills through official channels
Rs 23 Crore Allegedly Misappropriated
Records examined by the Lokayukta show that 13 partial bills were submitted between March 2019 and June 2023. Based on these documents, nearly Rs 29.4 crore was released between April 2019 and November 2024.
Investigators stated that materials worth only around Rs 6.1 crore were supplied to nearly 600 beneficiaries, while an estimated Rs 23.3 crore was allegedly misappropriated.
Officials and Contractor Booked
Those named in the case include retired assistant executive engineer Shambulingappa BS and contractor Prasad NP of National Projects Construction Corporation Ltd, along with several other officials involved in the project approval and billing process.
The case has been registered by Lokayukta SP Prasanna Desai, while the investigation is being led by Inspector Venkatesh Yadahalli.
Authorities said further investigation is underway to identify additional officials involved in the scam and trace the flow of funds.
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