Fake Tests, Real Money: Alleged ₹300-Crore Fraud Rocks Karnataka Labour Dept

The420.in Staff
3 Min Read

BJP MLC K.S. Naveen has levelled serious allegations against Karnataka’s Labour Minister Santhosh Lad, claiming irregularities worth over ₹300 crore in a government-run medical check-up programme for construction workers. Addressing a press conference in Bengaluru on Thursday, Naveen alleged that funds were fraudulently drawn from the Karnataka Construction Workers’ Welfare Fund over the last two years by producing fake records of medical examinations.

The BJP leader demanded Minister Lad’s resignation and called for a Central Bureau of Investigation (CBI) inquiry into the matter, asserting that the scale of the scam warranted independent scrutiny. Naveen claimed that the inflated bills and falsified beneficiary numbers had resulted in massive financial misappropriation.

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Discrepancy in Beneficiary Numbers Raises Red Flags

Citing Chitradurga district as a case study, Naveen pointed out that official records showed that 33,500 workers underwent medical check-ups. However, the district registry listed only about 6,000 registered construction workers. He stated that the mismatch clearly indicates large-scale fabrication of data to siphon off funds.

According to the BJP MLC, the Labour Department charged ₹2,940 per worker for these medical tests, an amount he claimed was one-and-a-half times higher than the prices prescribed by the Central Government. Naveen argued that this overpricing compounded the financial burden on public resources while raising questions about procurement and vendor selection.

The Construction Workers’ Welfare Fund, financed through mandatory contributions from employers and the state, is intended to provide healthcare, insurance, and welfare benefits to labourers. Naveen alleged that the misuse of these funds not only defrauded the exchequer but also deprived workers of essential services.

Demand for CBI Probe and Political Fallout

The allegations are expected to intensify political tensions in Karnataka, with the opposition BJP pressing for swift action. Naveen said that the case involved “systematic fraud,” which could not be investigated impartially by state agencies given the minister’s position.

Minister Santhosh Lad has yet to issue an official statement responding to the charges. The Labour Department, too, has not released clarifications regarding the discrepancies in data and costs. If proven, the allegations could mark one of the largest welfare fund scams in Karnataka in recent years, impacting thousands of construction workers across the state.

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