Karnataka Housing Scam: PMAY – Beneficiaries Left to Build Their Own Homes

A major irregularity has surfaced in Karnataka’s Haveri district under the Pradhan Mantri Awas Yojana – Housing for All (PMAY-HFA) scheme. According to a recent official inspection report, public funds were released to contractors for constructing homes meant for the urban poor.

However, the actual responsibility for construction was passed on to the beneficiaries themselves, many of whom are economically vulnerable, according to India Today report.

Haveri District Inspection Uncovers Irregularities

The scheme, which is managed by the Karnataka Slum Development Board through the Housing Department, aims to provide affordable housing for the underprivileged. The protocol is clear: the Housing Department completes the construction and hands over the ready-to-live homes to the Slum Board, which then allots them to the intended beneficiaries.

However, in several parts of Haveri district including Savanur, Shiggaon, and Bankapur taluks this process has reportedly broken down.

Contractors Received Funds, But Didn't Build

The findings, which came to light during a review meeting chaired by district in-charge Minister Shivanand Patil, reveal a troubling pattern. Contractors received payments from the government as if they had completed construction. But instead of building the homes, they allegedly shifted the burden to the beneficiaries.

In many cases, beneficiaries were told that the contractor would provide materials and labour only for up to 350 sq ft of construction—well below the standard or required area. Even that limited support was often partially delivered, with building materials supplied only up to 50% and labour charges not paid at all.

Housing Scam Under Investigation

Following the discovery, Minister Shivanand Patil has ordered an official inquiry into the matter. The inspection report, submitted to the Deputy Commissioner in May 2025, forms the basis for further investigation and potential action against those involved, the report further added.

Read More: The ₹1,500 AC Scam: Are You Paying for Gas That Never Leaked?

Conclusion

The alleged irregularities in the PMAY-HFA scheme in Haveri district raise important questions about accountability and transparency in public welfare programs. While the scheme is designed to uplift the economically vulnerable by providing affordable housing, its success ultimately depends on effective on-ground execution and monitoring.

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