Karnataka Leader of Opposition R. Ashoka on Thursday, 25 June alleged a ₹225 crore fraud under the state government's Gruha Lakshmi scheme, calling it a case of 'state-sponsored cybercrime' and demanding an immediate investigation by the Central Bureau of Investigation (CBI) and central cybercrime agencies. The Bharatiya Janata Party (BJP) leader's allegations centre on systematic manipulation of beneficiary data and financial transactions within the welfare scheme.

Key Allegations

Ashoka claimed the alleged irregularities surfaced through a 'data dump' analysis of departmental records — not through routine audits — pointing to what he described as deliberate concealment. He alleged that software algorithms had been manipulated to route funds to accounts of deceased beneficiaries and, in some instances, to the same bank accounts on multiple occasions.

According to Ashoka, certain beneficiary accounts were repeatedly altered over a span of two years, with some accounts reactivated after lying dormant for months and others receiving intermittent payments in patterns he described as indicative of organised digital manipulation and possible money laundering.

The Deceased Beneficiary Question

Among the most pointed allegations, Ashoka stated that records relating to 2.11 lakh deceased beneficiaries had been identified, while digital data concerning a further 77,376 deceased beneficiaries had not been made available by the concerned department. He questioned whether efforts were under way to alter or delete cyber logs linked to these accounts, and demanded a full explanation from the state government.

Ashoka further called for a probe into the IP addresses from which the alleged data manipulation was carried out and the network through which funds were reportedly diverted, accusing senior officials and political leaders of complicity.

Criticism of Chief Minister Shivakumar

The BJP leader directly criticised Chief Minister D.K. Shivakumar for maintaining silence on the matter, arguing the fraud could not be dismissed as a routine technical lapse. Ashoka alleged that the scale and pattern of the irregularities pointed to deliberate action rather than administrative error.

Separately, Ashoka also took aim at the state government's spending priorities, contrasting the ongoing renovation of the 160-year-old Kumara Krupa Guest House in Bengaluru — reportedly being converted into the Chief Minister's official residence-cum-office — with what he described as the neglected state of government hostels for students from Scheduled Castes, Scheduled Tribes, and backward classes. He alleged that students in many such hostels lack basic infrastructure and amenities, a situation he attributed to the absence of a full-time minister for the Social Welfare Department and inattention from district in-charge ministers.

Government Yet to Respond

The Karnataka government had not issued any response to Ashoka's allegations at the time of reporting. The Gruha Lakshmi scheme, a flagship welfare initiative of the state's Congress government, provides direct financial assistance to women heads of households. Ashoka urged Chief Minister Shivakumar to personally inspect government hostels across Karnataka to assess ground conditions.

With the CBI demand now formally on record and the data discrepancy figures made public, the political pressure on the Shivakumar administration over the scheme's implementation is set to intensify.