Karnataka Clerk’s ₹72 Crore Scam: 24 Homes, Lavish Assets Exposed in Lokayukta Raid

The420.in Staff
3 Min Read

Bengaluru : In an anti-corruption operation, Karnataka Lokayukta officials raided the home of a former clerk from the Karnataka Rural Infrastructure Development Limited (KRIDL). Despite earning just ₹15,000 per month, he was found to possess unaccounted assets reportedly worth ₹30 crore. Authorities suspect the wealth stems from a broader scheme involving forged documents tied to ₹72 crore in fake infrastructure projects.

Modest Salary, Massive Wealth Unearthed

Kalakappa Nidagundi, the accused clerk, had worked in Koppal for over two decades on a modest salary. During the search of his residence, officers uncovered 24 houses, six land plots, and 40 acres of farmland, along with luxury items including four vehicles, 350 grams of gold, and 1.5 kilograms of silver, some registered under his wife’s and brother’s names. Investigators say Nidagundi acted in collusion with a former KRIDL engineer, Z. M. Chincholkar. Together, they allegedly fabricated invoices for 96 incomplete or nonexistent infrastructure projects, siphoning off ₹72 crore in public funds via bogus paperwork and fraudulent billing.

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Broader Operation Targets Public Officials

The raid forms part of a broader Lokayukta crackdown targeting government officials accused of amassing disproportionate assets. In related actions, raids were carried out across multiple districts including Hassan, Chikkaballapura, Chitradurga, and Bengaluru leading to seizures exceeding ₹300 million across five officials holding roles such as engineers, tax assessors, and health officers. On July 23, the Karnataka Lokayukta carried out raids across 41 premises linked to eight government officials, including a senior IAS officer. The crackdown led to the recovery of assets valued at ₹37.42 crore. Among those targeted was IAS officer Vasanthi Amar Biwi, Special Deputy Commissioner at K-RIDE and head of land acquisition for the Bengaluru Suburban Railway Project. Raids on her five locations uncovered assets worth ₹9.03 crore  including three plots, four residential properties, three acres of land, gold jewellery worth ₹12 lakh, and vehicles estimated at ₹90 lakh. 

Official Response and Political Fallout

The revelations have sparked public and political scrutiny. Lokayukta officials emphasized the seriousness of the matter, promising a full inquiry and appropriate action. Meanwhile, the Karnataka administration faces growing pressure to address systemic loopholes exposed by the case as it highlights how low-paid government employees may exploit structural gaps to amass illicit wealth and Illustrates the critical role of independent oversight bodies in uncovering entrenched corruption.

Why are such actions on the rise?

Experts suggest that rising cases of corruption and financial irregularities in public projects have deeply eroded public trust. The Lokayukta’s recent raids signal a clear shift toward accountability  not just exposing the rot, but sending a sharp message across the bureaucracy that misconduct will face swift consequences. These cases Raises questions about oversight in infrastructure and rural development projects, and the need for stronger financial accountability mechanisms.

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