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India Today
15 hours ago
- India Today
New housing scam in Karnataka: Contractors get funds, but beneficiaries get work
A large-scale housing scam has come to light in Karnataka's Haveri district, where contractors allegedly received payments from the Housing Department for the construction of homes, but made beneficiaries build the structures themselves. This came to the fore during a recent meeting held with Haveri district in-charge Minister Shivanand Patil, who then ordered an official inquiry into the matter. The findings, accessed exclusively by India Today, are based on an official inspection report submitted to the Deputy Commissioner in May Housing Department, acting on behalf of the Karnataka Slum Development Board, had been tasked with constructing housing units in Haveri district under the Pradhan Mantri Awas Yojana - Housing for All (PMAY-HFA) scheme. According to protocol, the department is meant to complete construction and hand over the homes to the Slum Development Board, which in turn allocates them to the inspection report submitted to the Deputy Commissioner in May 2025 reveals widespread irregularities across Savanur, Shiggaon, and Bankapur taluks. Many contractors reportedly informed beneficiaries that they would only be providing building materials and labour equivalent to 350 square feet, with the onus of actual construction falling on the beneficiaries. Even this support was only partially provided in many cases, with materials supplied only up to 50 per cent and labour charges left In Savanur, where 696 houses were sanctioned at a total cost of Rs 43.71 crore, 545 houses were completed while 151 were still in progress. Work began in October 2021 and was executed by M/s Nakshatra Infrastructure under contractor Selvi Shanmuga. Although Rs 28.97 crore has been released so far and Rs 10.54 crore disbursed to 527 beneficiaries under the Gruha Bhagya scheme, the report notes that many homes remain incomplete. During site inspections, officials found that plastering and electrical connections were still pending, and the actual construction was carried out by beneficiaries themselves with only partial Bankapur, 454 houses were sanctioned with an estimated cost of Rs 27.76 crore. Contractor G Chandregouda began work in October 2021. At the time of the inspection, only 100 houses were completed, 154 were still under construction, and 200 were pending due to site clearance issues. Financial progress stood at Rs 12.32 crore, of which Rs 7.57 crore had been released. Rs 3.74 crore was disbursed to 187 beneficiaries under Gruha Bhagya. Here too, the same pattern was reported: beneficiaries received partial material, no labour payment, and electricity was unavailable in several homes. Some beneficiaries had built homes beyond the approved size, reportedly without official had two packages of housing works. In the first package, 500 houses were sanctioned at a cost of Rs 26.54 crore, with work starting in July 2021 by contractor Krishnamurthy & Co. While 474 houses were completed and 26 remained in progress, only Rs 17.92 crore had been released out of a financial target of Rs 25.35 crore. Rs 3.42 crore was distributed to 171 beneficiaries. Here too, contractors were reportedly absent during inspections. Beneficiaries said they built the houses themselves with partial support and no labour cost provided. Despite construction, several homes had no electricity, with contractors unresponsive to the second package for Shiggaon, 350 houses were sanctioned with a budget of Rs 20.77 crore. Contractor TN Paramesh of Chair Ventures LLP began work in July 2021. As per the report, 160 houses were completed and 190 were in progress, with Rs 11.96 crore released and Rs 4.65 crore disbursed to 242 beneficiaries. The inspection found similar concerns: contractors were missing from the sites, beneficiaries reported incomplete support, and officials were informed on the spot of the lack of contractor the three taluks, the report identifies a consistent pattern of malpractice: contractors allegedly billed the full amount while providing only partial materials, failed to pay labour charges, and often remained absent or unresponsive. Beneficiaries were left to complete construction on their own, sometimes building beyond the approved area. Basic amenities such as plastering and electricity connections were often official report, dated May 8, 2025, was submitted by the Sub-Divisional Officer of Savanur along with Executive Engineers from the Public Works Department, Panchayat Raj Engineering Division, Rural Water Supply and Sanitation Department, and the Karnataka Slum Development Board. The report called for necessary action and was sent to the Deputy Commissioner of Haveri for further revelations come in the wake of a political storm triggered by a leaked audio clip purportedly featuring Congress MLA BR Patil in which he accuses officials of the Rajiv Gandhi Housing Corporation of large-scale corruption, including bribery in house the clip, Patil is heard accusing officials linked to the Rajiv Gandhi Housing Corporation of widespread corruption, alleging that houses were allotted only to those who paid bribes. He also claims that recommendation letters from elected representatives were routinely ignored. The conversation is reportedly between Patil and Sarfaraz Khan, personal assistant to Housing Minister Zameer Ahmed Khan.- Ends advertisementIN THIS STORY#Karnataka
Hans India
16 hours ago
- Hans India
Karnataka Housing Fraud Exposed: Contractors Receive Payment While Beneficiaries Build Own Homes
A significant housing fraud has been exposed in Karnataka's Haveri district, revealing how contractors collected government payments for home construction under the Pradhan Mantri Awas Yojana while compelling beneficiaries to build their own residences. The scheme defrauded the Housing for All program by transferring construction responsibilities to vulnerable recipients despite contractors receiving full compensation. The scandal emerged during a meeting with Haveri district minister Shivanand Patil, who subsequently ordered an official investigation. An exclusive inspection report from May 2025, obtained by authorities and submitted to the Deputy Commissioner, documents extensive irregularities across multiple administrative areas including Savanur, Shiggaon, and Bankapur regions. Under standard protocol, the Housing Department should complete construction projects on behalf of the Karnataka Slum Development Board before transferring finished homes to designated beneficiaries. However, investigation findings reveal contractors systematically informed recipients they would receive only building materials and labor equivalent to 350 square feet, with actual construction becoming the beneficiaries' responsibility. Even this limited support was frequently provided incompletely, with materials supplied at only 50 percent capacity and labor payments remaining unpaid. In Savanur taluk, authorities sanctioned 696 houses requiring Rs 43.71 crore in total funding. While 545 units reached completion status and 151 remained under construction, the project suffered from significant implementation failures. Work commenced in October 2021 under contractor M/s Nakshatra Infrastructure, managed by Selvi Shanmuga. Despite releasing Rs 28.97 crore in funding and distributing Rs 10.54 crore to 527 beneficiaries through the Gruha Bhagya scheme, numerous homes remained unfinished. Site inspections revealed missing plastering work, absent electrical connections, and evidence that beneficiaries had undertaken construction tasks independently with minimal contractor assistance. The Bankapur area presented similar violations, with 454 sanctioned houses requiring Rs 27.76 crore in estimated costs. Contractor G Chandregouda initiated work in October 2021, but inspection results showed only 100 completed homes, 154 under construction, and 200 pending due to site clearance complications. Financial disbursements totaled Rs 12.32 crore, with Rs 7.57 crore released and Rs 3.74 crore distributed to 187 beneficiaries. The investigation documented identical problems: partial material provision, unpaid labor costs, and unavailable electricity in multiple residences. Some beneficiaries constructed homes exceeding approved dimensions, reportedly without official contractor support. Shiggaon taluk operated under two separate housing packages. The first package encompassed 500 houses valued at Rs 26.54 crore, with construction beginning in July 2021 under contractor Krishnamurthy & Co. Although 474 houses achieved completion and 26 remained in progress, only Rs 17.92 crore had been released from the Rs 25.35 crore financial target. Rs 3.42 crore reached 171 beneficiaries, but contractors were frequently absent during official inspections. Recipients reported completing construction independently with partial support and no labor cost coverage. Multiple homes lacked electrical connections, with contractors remaining unresponsive to beneficiary complaints. The second Shiggaon package involved 350 houses requiring Rs 20.77 crore in funding. Contractor TN Paramesh of Chair Ventures LLP commenced work in July 2021, achieving 160 completed units and 190 in progress. Financial releases totaled Rs 11.96 crore, with Rs 4.65 crore distributed to 242 beneficiaries. Inspection findings mirrored other locations: contractor absence from construction sites, incomplete beneficiary support, and officials discovering lack of contractor engagement during field visits. The comprehensive report identifies consistent fraudulent practices across all three administrative areas. Contractors allegedly submitted bills for full payment amounts while providing only partial materials, failed to compensate laborers, and frequently remained absent or unresponsive to inquiries. Beneficiaries faced the burden of completing construction independently, sometimes expanding beyond approved specifications. Essential amenities including proper plastering and electrical installations were commonly missing from completed structures. The official documentation, dated May 8, 2025, was prepared by the Sub-Divisional Officer of Savanur in collaboration with Executive Engineers from various departments including Public Works, Panchayat Raj Engineering Division, Rural Water Supply and Sanitation Department, and the Karnataka Slum Development Board. The report recommended necessary corrective action and was forwarded to the Deputy Commissioner of Haveri for further legal proceedings. These revelations coincide with broader political controversy surrounding housing sector corruption, triggered by leaked audio recordings allegedly featuring Congress MLA BR Patil. The recordings suggest widespread corruption within the Rajiv Gandhi Housing Corporation, including bribery requirements for house allocations and systematic disregard for elected representatives' recommendation letters. The conversation reportedly occurred between Patil and Sarfaraz Khan, personal assistant to Housing Minister Zameer Ahmed Khan, indicating potential systemic corruption extending beyond individual contractor misconduct.
