BENGALURU: In a major legal development in one of Karnataka’s high-profile welfare fraud probes, a Special Court under the Lokayukta jurisdiction on 29 December 2025 denied anticipatory bail to eight officials linked to the alleged SC Women Welfare Scam.
The case revolves around accusations of multi-crore rupee misappropriation of government funds earmarked for Scheduled Caste women’s self-help groups, raising renewed concerns about financial integrity in public welfare schemes.
What is the Ruling of Court on SC Women Welfare Scam
The Special Lokayukta Court, presided over by Judge K. M. Radhakrishna, refused anticipatory bail pleas filed by the accused.
In delivering the order, the judge strongly criticised systemic corruption and highlighted the necessity of custodial interrogation to unravel the full extent of the alleged fraud.
Judge Radhakrishna observed that financial scams involving public servants and influential intermediaries threaten public welfare programmes and erode trust in governance.
The judge’s remarks emphasised that corruption has become “universal with no fear of law,” and that unchecked misappropriation of funds could jeopardise the livelihoods of genuine beneficiaries.
Defence Arguments and Court’s View on SC Women Welfare Scam
The defence argued that:
- A disciplinary authority had cleared the officials on 19 June 2025 after an internal inquiry led by a retired district judge.
- A previous private complaint by the same complainant had resulted in a ‘B’ report (closure) by authorities.
- The Lokayukta had closed proceedings against four individuals in connected allegations.
However, the court rejected these contentions, stating that such prior closures carry no weight in the present criminal proceedings, especially in view of the prima facie evidence suggesting serious financial misconduct.
Key Accused in SC Women Welfare Scam
The eight accused individuals, all associated with Dr. B. R. Ambedkar Development Corporation in the Bengaluru district, include:
- Vijay Kumar – Retired District Manager
- Chandra K V – Former District Manager
- Akshata – District Manager and Taluk Development Officer
- Keshava Murthy – Retired Superintendent Officer
- Arun Kumar – Taluk Development Officer
- Mahadevi Bai – Taluk Development Officer
- Neelamma – Taluk Development Officer
- Vijayalakshmi – Retired Taluk Development Officer
All eight have categorically denied the allegations.
Key Allegations and Investigation Background
According to court filings and police records, the accused allegedly used registration details of legitimate self-help groups to divert welfare funds into bank accounts of fraudulent or non-existent groups controlled by intermediaries. These funds, intended exclusively for the economic empowerment of SC women, were reportedly diverted between 2020 and 2023, resulting in misappropriation of crores of rupees.
The case was registered by Lokayukta police under the Prevention of Corruption Act and several sections of the Indian Penal Code (IPC).
The complaint was filed by R. Gururaj, a resident of R S Palya in Bengaluru, whose allegations triggered the investigation.
Prosecutors have told the court that evidence collected thus far suggests a larger network involving mediators and possibly unidentified influential figures who facilitated the fraud. This, prosecutors argue, underscores the importance of custodial interrogation of the accused for further leads.
