State government plans major overhaul after audit identifies 1.48 lakh deceased beneficiaries receiving payments
Bengaluru: The Karnataka government has initiated a comprehensive review of its flagship Gruha Lakshmi Scheme after an internal audit reportedly uncovered large-scale irregularities involving payments made to deceased beneficiaries. The findings have prompted authorities to consider significant reforms aimed at strengthening beneficiary verification and preventing misuse of public funds.
The issue came to light following an inspection and technical audit conducted by the State Guarantee Scheme Implementation Committee. According to officials, approximately 1.48 lakh beneficiaries who had already passed away continued to receive monthly financial assistance under the scheme, resulting in substantial expenditure from the state exchequer.
"The audit revealed that payments continued to be credited to the accounts of deceased beneficiaries, necessitating an immediate review of the scheme's verification mechanism."
Gruha Lakshmi Audit Flags ₹128 Crore Payment Irregularity
The audit report submitted by State Guarantee Scheme Implementation Committee Vice-Chairman Dinesh Gooligowda reportedly found that nearly ₹128 crore was credited to bank accounts linked to deceased beneficiaries over several months.
Investigators also identified cases where funds deposited into such accounts were allegedly withdrawn through ATMs and digital payment platforms after the beneficiaries' deaths. The findings have raised concerns about gaps in beneficiary verification and monitoring systems.
Officials are now examining the extent of the issue and assessing measures required to prevent similar occurrences in the future.
Technical Errors Create Beneficiary Verification Challenges
During the review process, authorities reportedly discovered additional technical inconsistencies within the scheme database.
In several cases, the bank account holder's details did not match the mobile number registered in the beneficiary records. Officials believe such discrepancies may have contributed to administrative complications and hindered effective monitoring of payments.
The government is now working to rectify these data mismatches and strengthen digital verification procedures.
"Ensuring that benefits reach only eligible beneficiaries remains the government's priority as corrective measures are being planned."
Fresh Gruha Lakshmi Applications Under Consideration
Sources indicate that the government is evaluating the possibility of reopening the application process and conducting a fresh verification exercise for eligible beneficiaries.
The proposed exercise aims to eliminate ineligible entries, update beneficiary records, and improve transparency in the implementation of the welfare scheme.
Officials are also exploring mechanisms to periodically verify beneficiary status and ensure that financial assistance reaches the intended recipients without interruption.
Government Plans Stronger Verification Through e-Janma Integration
As part of the proposed reforms, the government is considering integrating beneficiary records with the e-Janma civil registration system to automatically update death records.
Authorities are also examining the feasibility of introducing mandatory annual verification through biometric authentication or life certificates. Such measures are expected to reduce the risk of payments continuing after a beneficiary's death and improve accountability in welfare disbursement.
The review comes as the government seeks to enhance the efficiency of one of its most prominent welfare initiatives while ensuring responsible utilisation of public funds.
Background of the Gruha Lakshmi Scheme
The Gruha Lakshmi Scheme, launched by the Karnataka government, provides a monthly financial assistance of Rs. 2,000 to eligible women heads of households. The programme was introduced as one of the state's flagship guarantee schemes aimed at strengthening household income and supporting women's economic empowerment. Since its launch, lakhs of beneficiaries across Karnataka have received assistance under the scheme.
