Archive · 30 Jun 2025
Karnataka Housing Fraud: Contractors Defraud Beneficiaries
Imagine the government promised to build houses for people, but the builders took the money and didn't finish the job.
In Haveri, India, contractors were paid to build homes under a program called Pradhan Mantri Awas Yojana.
However, they gave the people only some materials and made them do most of the work themselves.
Even the materials they gave were not enough and labor costs were not paid.
A report shows these builders were cheating and not following the rules.
This is like promising to build a toy but only giving parts, so the people had to build it themselves.
It also linked to a bigger problem in the government where people were asking for bribes to give houses to others.
Contractors in Haveri district collected payments for home construction under the Pradhan Mantri Awas Yojana but did not complete the work.
Beneficiaries were forced to build their own homes, despite contractors receiving full compensation.
An official investigation revealed extensive irregularities in Savanur, Shiggaon, and Bankapur regions.
Contractors provided incomplete materials and failed to pay laborers, leaving beneficiaries to cover the costs.
The scandal has triggered political controversy, with allegations of corruption within the Rajiv Gandhi Housing Corporation.
- Who
- Contractors, beneficiaries of the Pradhan Mantri Awas Yojana, and government officials.
- What
- A housing fraud where contractors took payments but didn't build homes properly in Haveri, India.
- When
- Investigation report from May 2025
- Where
- Haveri district, Karnataka, India.
- Why
- Contractors sought to profit from the Housing for All program by collecting full payments without completing the required construction work.
Government Officials
Contractors
Implementation of Housing Projects
Government Officials
Upholding Housing for All Scheme standards, ensuring proper construction and fund disbursement
Contractors
Failure to monitor contractors, leading to fraudulent practices and incomplete construction
Bribery and corruption
Government Officials
Following the rules to get houses allocated and bribery requirements
Contractors
Lack of accountability and ethical conduct from officials
- Location
- Haveri district, Karnataka
- Scheme
- Pradhan Mantri Awas Yojana
- Areas Affected
- Savanur, Shiggaon, Bankapur
- Contractor Name
- M/s Nakshatra Infrastructure, G Chandregouda, Krishnamurthy & Co., TN Paramesh
- Report Date
- May 8, 2025
- Total Funding (Savanur)
- Rs 43.71 crore
- Houses completed (Savanur)
- 545