---
title: "Karnataka Lokayukta Uncovers Financial Irregularities in Treasury Offices"
url: https://projectchintan.com/article/karnataka-lokayukta-treasury-raid-financial-probe-7zkyt
publisher: Project Chintan
author: Project Chintan Newsroom
section: Politics
published: 2026-08-12T15:32:08.561Z
modified: 2026-08-12T18:30:07.184Z
language: en-IN
---

# Karnataka Lokayukta Uncovers Financial Irregularities in Treasury Offices

Karnataka Lokayukta inspectors found significant financial and procedural irregularities during surprise checks of Bengaluru treasury offices. A staffer's account showed ₹23 lakh in digital transactions, far exceeding their salary, prompting further investigation.

## Key takeaways

- Karnataka Lokayukta conducted surprise raids on Bengaluru treasury offices on August 11.
- A staffer at Malleswaram Sub-Treasury allegedly processed ₹23 lakh in digital transactions, significantly exceeding their salary.
- Inspections uncovered lapses in cash declarations, record-keeping, and pending bill processing.
- Unexplained cash was seized at the Devanahalli District Treasury, and a potential bribe transaction was noted at the State Huzur Treasury.

The Karnataka Lokayukta has initiated investigations into alleged financial and procedural misconduct discovered during surprise inspections of treasury offices in Bengaluru city and Bengaluru Rural districts. The inspections, conducted on Tuesday, August 11, by teams of judicial officers, police, and staff, were prompted by complaints regarding the manipulation of bill processing systems.

## What Happened

During checks at the Malleswaram Sub-Treasury, a First Division Assistant's Unified Payments Interface (UPI) account revealed digital transactions totaling approximately ₹23 lakh between January and August 2026. This figure starkly contrasts with the staffer's reported monthly salary of around ₹70,000. The Lokayukta has ordered a review of the employee's bank statements, UPI activities, and income tax returns from the past two years.

At the Devanahalli District Treasury, an officer declared possessing ₹1,500 in cash, but subsequent searches reportedly uncovered ₹1.34 lakh in unexplained cash, seized from a handbag, a drawer, and an envelope. In a separate incident at the State Huzur Treasury, officials reportedly found a ₹3,000 transaction in a staff member's UPI account that was allegedly a bribe from a pilot driver. The employee was questioned and asked to provide bank records.

Beyond the significant digital and cash findings, inspections also identified lapses in cash declaration procedures, attendance record-keeping, movement registers, and the maintenance of essential documents across several offices. The Malleswaram office, which reportedly processes about ₹95 crore in monthly transactions for 106 Drawing and Disbursing Officers (DDOs), was also noted for lacking CCTV cameras and required Lokayukta signage. Numerous General Provident Fund (GPF) and other bills were found to be pending beyond their stipulated deadlines.

## Key Facts

 
- Karnataka Lokayukta conducted surprise inspections of treasury offices in Bengaluru city and Bengaluru Rural districts on Tuesday, August 11.
 
- A staffer at the Malleswaram Sub-Treasury allegedly had ₹23,00,855 in digital transactions between January and August 2026, with a monthly salary around ₹70,000.
 
- Officials reportedly found ₹1.34 lakh in unexplained cash during a search at the Devanahalli District Treasury.
 
- A ₹3,000 transaction in a staffer's UPI account at the State Huzur Treasury was allegedly received as a bribe.
 
- Lapses were found in cash declarations, attendance records, movement registers, and document maintenance.
 
- The Malleswaram office, handling approximately ₹95 crore monthly, lacked CCTV cameras and required Lokayukta displays.
 
- Several GPF and other bills were pending beyond prescribed timelines.

Officials stated that detailed scrutiny of documents, bank accounts, and digital transactions is ongoing. Further departmental or legal actions are anticipated if financial misconduct is confirmed.

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Canonical: https://projectchintan.com/article/karnataka-lokayukta-treasury-raid-financial-probe-7zkyt
Reported from: Multiple Sources