Karnataka High Court Seeks State's Response On Alleged Non-Disbursal Of ₹2,000 Monthly Assistance Under 'Griha Lakshmi' Scheme

The Karnataka High Court on Thursday (May 21) issued notices to the State authorities on a plea filed against their alleged failure to disburse two monthly instalments of Griha Lakshmi Yojana to the women beneficiaries in February and March 2025, respectively.

The scheme promises Rs 2000 per month to female heads of households, subject to certain eligibility conditions.

The vacation bench of Justices Suraj Govindaraj and Justice K Manmadha Rao was hearing a PIL filed by two social workers alleging a lapse of approximately Rs 5000 crores from the public exchequer, affecting nearly 1.26 crore women beneficiaries.

“…Learned AGA accepts notice for respondent Nos.1 to 3. He seeks for and is granted two weeks to make his submissions. Re-list on 04.06.2026”, the court accordingly ordered.

The vacation bench took up the PIL after the petitioners moved the court, citing grave public interest and severe financial hardship suffered by women in Karnataka due to the non-disbursement of arrears.

Accordingly, notices have been issued to the Karnataka Finance Department, the Panchayati Raj Department and the Department of Women and Child Development.

The petitioners have sought a writ of mandamus directing the respondent authorities to release the arrears. Meanwhile, it is sought to direct the State to keep the money in escrow so that the funds are not diverted for other purposes.

For context, the Griha Lakshmi Yojana came into effect on June 6, 2023. By October 2023, over 1.28 crore women from across Karnataka had registered for the scheme. The petition states that no instalments were disbursed for February and March 2025.

The petition notes that the total expenditure under the scheme to date is approximately Rs 54,000 crores, of which only about Rs 46,000 crores has been disbursed, leaving a gap of roughly Rs 8,000 crores, with the February and March arrears forming a substantial part of those allocated funds.

The State had earlier cited 'administrative transition' of routing the payments through the Taluk Panchayats instead of the Department of Women & Child Development, and processing the payments through a Direct Benefit Transfer system. However, during this transition period, the amounts to be disbursed for the aforesaid months were not processed, and the finance department allegedly did not carry forward the unutilised funds to the next financial year, leaving a deficit of Rs 5000 crores that ought to have been paid to the beneficiaries.

This lapse, the plea contends, has resulted in a breach of Article 14 and Article 21 of the Constitution. The State has also committed a breach of the doctrine of legitimate expectations after making periodic payments for over a year and halting them for the aforesaid months without valid justification, the plea adds.

Senior Advocate Vikram Huilgol appeared for the petitioners.

Case Title: R Ganga & Anr. v. The Principal Secretary, Finance Department & Ors.

Case No.: WP No.15855 /2026