More irregularities found in Covid-19 fund use in Karnataka during BJP rule

Fresh details about the misappropriation of Covid-19 funds allotted for Karnataka have come to light. Information accessed exclusively by India Today showed unauthorised payments to unaccredited private laboratories, inappropriate fund allocations, and an overall lack of transparency in record-keeping.
These findings, submitted in a report by an inquiry commission, painted a troubling picture of mismanagement and potential misuse of pandemic-related funds. The report by the inquiry committee led by Justice Michael D’Cunha was submitted to Chief Minister Siddaramaiah.
According to sources, Rs 6.93 crore was improperly paid to 14 private laboratories, some of which lacked the necessary accreditation from the Indian Council of Medical Research (ICMR). Furthermore, Rs 4.28 crore was given to eight laboratories without formal agreements, a clear breach of central government regulations.
The commission noted that these lapses reflect a lack of oversight from the state health department, which allowed payments to labs that did not have the required regulatory clearances or contractual commitments.
Further scrutiny of pandemic spending revealed potential misappropriations in other areas. A staggering Rs 7.03 crore, earmarked for publicity, was allegedly redirected improperly, and an additional Rs 8.85 lakh was paid to an organisation called “Chukki Talkies” without clear justification.
This unusual expense raised questions about the approval process for disbursing such funds, as there was no apparent link to Covid-19 response efforts.
The commission also highlighted a concerning absence of documentation for significant payments. The health department could not produce records for Rs 5 crore in spending, reportedly allocated under initiatives like the “Aptamitra” scheme, which aimed to offer Covid-related health information to patients. These funds were allegedly diverted from their intended purpose, signalling possible embezzlement under the guise of pandemic support.
Additionally, Rs 4.19 crore was paid to two BPO (Business-process outsourcing) companies contracted to provide patient information services, but the legitimacy of these agreements has been questioned by the commission. The lack of clarity around these contracts has led to suspicions about possible collusion between BPO companies and high-level officials of the previous BJP government.
Reacting to the report, the Karnataka government has now commissioned a Special Investigation Team (SIT) to dig deeper into these irregularities. The commission report recommended action against former Chief Minister BS Yediyurappa and former Health Minister B Sriramulu for irregularities in the procurement of PPE kits during the pandemic.
The SIT is expected to determine individual accountability and take corrective measures to prevent such lapses in the future. However, the findings have prompted a strong response from BJP who has dismissed the allegations as politically motivated and an attempt by the Congress to tarnish the party’s image.
Meanwhile, Karnataka ministers Dinesh Gundu Rao and Krishna Byre Gowda submitted a memorandum to Governor Thaawarchand Gehlot, appealing for action against Union Minister Pralhad Joshi, whom they accuse of trying to undermine the inquiry, led by Justice Michael D’Cunha, into the corruption during the Covid-19 pandemic.
Joshi publicly criticised the findings, accusing Justice D’Cunha of political bias by suggesting he acted as an “agent” rather than an independent investigator.