Bengaluru, 11 April

Karnataka Chief Minister Siddaramaiah has directed immediate action over complaints that private finance companies and microfinance institutions are forcibly deducting money from the accounts of women beneficiaries under the State government’s Gruha Lakshmi scheme towards loan repayments.

Acting on an appeal by Karnataka Guarantee SchemesImplementation Authority’s vice president and MLC Dinesh Gooligowda, the CM instructed the Chief Secretary to issue directions to officials concerned.

The Chief Secretary has written to the Additional Chief Secretaries of the Home and Urban Development Departments, all Deputy Commissioners and Zilla Panchayat Chief Executive Officers, directing them to take urgent steps to prevent such deductions.

Mr Gooligowda, in his letter to the CM and DyCM DK Shivakumar, highlighted that certain private finance companies, microfinance institutions and self-help groups were deducting the monthly assistance of Rs 2,000 from beneficiaries’ bank accounts without their knowledge.

The Gruha Lakshmi scheme, a key welfare initiative of the State government, provides financial assistance to women to support household expenses and enhance economic independence.

The Chief Minister noted that such practices defeat the very objective of the scheme and push vulnerable women into further financial distress.

In his appeal, Mr Gooligowda called for the establishment of a dedicated grievance redressal mechanism, such as a helpline or district-level committees, to enable beneficiaries to report such incidents. Further, he urged the government to initiate stringent legal action, including cancellation of licences, against institutions found guilty of unauthorised deductions.