A massive housing scam has emerged in Karnataka’s Haveri district, where contractors allegedly collected payments for home construction under the PMAY-HFA scheme but forced beneficiaries to build the houses themselves, often with only partial material and no labour support.
The scam came to light during a review meeting chaired by district in-charge minister Shivanand Patil, who immediately ordered an inquiry. The shocking details are based on an inspection report submitted to the Deputy Commissioner in May 2025 and accessed exclusively by India Today.
As per the report, the Housing Department, acting through the Karnataka Slum Development Board, was to construct and hand over homes to the board, which would then allocate them. But in taluks like Savanur, Shiggaon, and Bankapur, contractors gave only limited materials (up to 50%) and skipped labour payments. In many cases, beneficiaries had to build the houses on their own.
In Savanur, out of 696 sanctioned homes, only 545 were completed. Despite ₹28.97 crore being released, plastering and electrical connections were pending in many units. In Bankapur, just 100 of the 454 sanctioned homes were finished. In Shiggaon, two housing packages showed similar trends — contractors were missing, and homes lacked basic amenities.
The report, signed by engineers from various departments, outlines systematic misuse of funds and widespread dereliction. It was submitted to the Deputy Commissioner for action.
Meanwhile, a leaked audio clip allegedly featuring Congress MLA B.R. Patil has added fuel to the fire, accusing officials of the Rajiv Gandhi Housing Corporation of corruption and bribery in allotments.