The Lokayukta has registered a case against officials of the Karnataka Slum Development Board and a private contractor for allegedly causing a loss of over ₹23.35 crore to the government through irregularities in housing works taken up under the Pradhan Mantri Awas Yojana (Urban)-2022 scheme in Belagavi district.

According to the complaint, large-scale irregularities were allegedly committed in PMAY housing projects executed in the notified slum areas of Ramdurg town in Belagavi district. Officials allegedly prepared fake bills and records in collusion with contractors despite several houses not being fully constructed.

The investigation revealed that though nearly 600 houses were allegedly incomplete, officials certified the works as completed and released payments by creating false inspection reports and fabricated GPS-based photographic records.

The Lokayukta officials said a total of ₹29.45 crore was released to the contractor between April 2019 and November 2024 through 13 bills and related approvals.

A preliminary inquiry reportedly found that instead of constructing complete houses for beneficiaries, only construction materials worth around ₹6.10 crore were supplied, while government funds amounting to about ₹23.35 crore were allegedly misappropriated in collusion with officials and contractors.

Based on the findings, the Lokayukta registered a case against retired Assistant Executive Engineer Shambulingappa B.S. and contractor Prasad N.P. of National Projects Construction Corporation Limited, along with others.

On May 19, Lokayukta teams conducted simultaneous raids at multiple locations linked to the accused, including government offices, residences of officials and contractors, and the office of NPCC in Bengaluru. Several documents related to the alleged scam were seized during the searches.