The Congress government in Karnataka has ordered a comprehensive re-verification of all 1.28 crore beneficiaries enrolled under the Gruha Laxmi scheme, which provides a monthly allowance of ₹2,000 to women heads of households across the state. The decision, announced on 10 June, follows the detection of alleged misuse — including payments reportedly credited to the accounts of 1.48 lakh deceased beneficiaries.

How the Misuse Was Detected

The irregularity was identified by Congress MLC Dinesh Gooligowda, Vice Chairman of the Guarantee Implementation Committee. According to Gooligowda, monthly payments of ₹2,000 had been deposited into accounts belonging to beneficiaries who had already died — in some cases for up to five months. He said he submitted a report flagging the misuse to then Chief Minister Siddaramaiah and then Deputy Chief Minister D.K. Shivakumar.

'The payments have now been stopped. I had submitted a report to then Chief Minister Siddaramaiah and then Deputy Chief Minister D.K. Shivakumar, highlighting the misuse of the scheme,' Gooligowda said. He confirmed that Shivakumar has agreed to a full re-verification and has issued directions in this regard after chairing a dedicated meeting on the matter.

Officials also found discrepancies in the mobile numbers linked to certain beneficiary accounts during the review process.

Scale of the Scheme and Financial Exposure

The Gruha Laxmi scheme covers approximately 1.28 crore women beneficiaries across Karnataka, with the state government spending an estimated ₹30–32 crore every month on the programme. The payments to 1.48 lakh deceased accounts — running for up to five months — point to a potential cumulative exposure of several hundred crores of rupees in unverified disbursements, according to sources.

The government is reportedly considering inviting fresh applications from all beneficiaries as part of the verification exercise. A proposal to that effect could be taken up at the next Cabinet meeting, sources said.

Government's Position: Scheme Is Not Being Wound Down

Chief Minister D.K. Shivakumar has repeatedly assured that the government has no intention of withdrawing any of its five guarantee schemes. He has, however, stressed the need for beneficiary verification to ensure that welfare benefits reach only eligible recipients. Shivakumar has previously flagged alleged misuse in both the Shakti free bus travel scheme and the Gruha Laxmi programme.

This comes amid broader political scrutiny of the Congress government's guarantee commitments, which critics argue have strained the state's fiscal position and diverted funds from capital expenditure.

Opposition Criticism

Janata Dal (Secular) leader and social media influencer Jhanvi Rajshekar criticised the government's handling of the scheme, alleging that the guarantees were 'implemented in an unscientific manner from the beginning.'

'Then Deputy Chief Minister and current Chief Minister D.K. Shivakumar had claimed that the benefits were available to everyone. As a result, hundreds of crores of rupees were allegedly disbursed to ineligible beneficiaries,' she alleged. Rajshekar also pointed to the Sandhya Suraksha scheme, where she claimed the beneficiary count was reduced from 23 lakh to around 6–7 lakh, and to the Indira Canteen programme, of which she alleged only about 200 of nearly 600 outlets remain operational.

'Three years of the government's tenure have already passed, and the final year will effectively be an election year. At this stage, identifying genuine beneficiaries and correcting the system will be difficult,' she alleged.

What Comes Next

With the re-verification process yet to formally begin, the government faces the challenge of reassessing 1.28 crore beneficiaries without disrupting payments to eligible women. The outcome of the Cabinet discussion on fresh applications will be closely watched as a signal of whether the scheme's structure — and its political optics — will be meaningfully overhauled before the next election cycle.