BJP alleges misuse of Rs 1,323.96cr special grant by Cong-led K’taka govt
Bengaluru: BJP state president and MLA B.Y. Vijayendra has alleged that the Congress-led Karnataka government diverted a special grant released by the Centre for specific schemes and utilised it for other projects and departments at its discretion, despite lacking the authority to do so.
Addressing a press conference at the BJP state headquarters, Jagannath Bhavan, in Bengaluru on Saturday, Vijayendra claimed that, according to information available to him, the state government and the concerned departments had not properly utilised the funds. Instead, under pressure from the Finance Department, a fabricated utilisation certificate was allegedly submitted to the Centre, he charged.
He alleged misuse of Rs 1,323.96 crore released as a special grant by the Centre and demanded that the Chief Minister clarify whether a fake utilisation certificate had been submitted for the funds. “Where has this money been transferred?” he asked while releasing related documents.
Vijayendra said that on July 1, 2025, the Finance Department had released the said amount for capital investment. The Karnataka Minor Irrigation Department was required to submit a utilisation certificate to the Centre certifying that the funds had been used for the designated purpose.
He further alleged that similar utilisation certificates had been issued by the Krishna Bhagya Jala Nigam and the Visvesvaraya Jala Nigam under pressure from the Finance Department. Responding to a query, he said the grant was interest-free and earmarked for specific purposes.
Referring to the Valmiki Development Corporation scam, Vijayendra said that, in his view, the transfer of hundreds of crores of rupees to neighbouring Telangana could not have taken place without the knowledge or approval of the Chief Minister, who also holds the Finance portfolio.
He pointed out that investigations are underway into the opening of thousands of fake accounts allegedly used to siphon off funds, and that the concerned minister has resigned in connection with the case.
He also referred to the suicide of a Scheduled Tribe board officer, Chandrashekhar, who allegedly could not withstand pressure from senior officials.
He further alleged that, at the request of the Finance Department, a utilisation certificate for Rs 132 crore under the Centre’s special grant had been submitted, even though the said amount had not been released and remained pending, as noted by departmental officials.
“Is this utilisation certificate fabricated? Was it issued under pressure? Is it a valid certificate?” he questioned, demanding an explanation from the Finance Department and the Chief Minister.
He also sought clarification on which department the Centre’s special grant had been transferred to and whether it had been utilised in accordance with the approved purpose.
Vijayendra alleged that BJP legislators had raised questions during the Belagavi winter session regarding the transfer of Rs 5,000 crore under the Gruha Lakshmi scheme, seeking details on where the funds had been allocated and whether they had been properly utilised, misused, or involved in corruption.
He claimed that the Chief Minister, who also holds the Finance portfolio, has not responded to these queries so far.
He criticised the Chief Minister for giving what he described as an evasive reply to Leader of the Opposition R. Ashoka’s question in the Assembly recently and urged him to clarify the status and utilisation of the pending Rs 5,000 crore.
Former Deputy Chief Minister and MP Govind Karjol and former Deputy Chief Minister and MLA C.N. Ashwath Narayan were present at the press conference.