Pramesh S Jain
The Karnataka Lokayukta has uncovered alleged financial and procedural irregularities during surprise inspections of treasury offices in Bengaluru city and Bengaluru Rural districts,with a staffer at the Malleswaram Sub-Treasury allegedly recording Rs.23 lakh in digital transactions despite earning a monthly salary of around Rs.70,000.
The inspections were conducted on August 11 by teams comprising Lokayukta judicial officers, police personnel and staff following complaints of manipulation in the First-In, First-Out (FIFO) and Round Robin systems used for processing bills.

Lokayukta Justice B.S.Patil personally inspected the State Huzur Treasury on Nrupatunga Road,where several deficiencies were detected.
Officials also examined staff members’ PhonePe transactions and reportedly found a Rs.3,000 transaction allegedly taken as a bribe from the pilot driver of the Lokayukta judge.
The concerned employee was questioned and directed to produce bank records.
At the Devanahalli District Treasury,officials found that an officer had declared only Rs 1,500 in cash,while searches allegedly yielded Rs.15,000 from a handbag,Rs.1 lakh from a drawer and Rs.20,000 from an envelope.
The Rs.1.34 lakh unexplained cash was seized in the presence of witnesses.
At the Malleswaram Sub-Treasury,the PhonePe account of First Division Assistant Keshav Raj allegedly showed transactions totalling Rs.23,00,855 between January and August 2026.
The Lokayukta has directed scrutiny of his bank statements,UPI transactions and income-tax returns for the past two years.
The inspection also found lapses in cash declarations, attendance records, movement registers and maintenance of mandatory documents.
Assistant Treasury Officer Mahesh Babu P.allegedly failed to make cash declarations on several dates,while another employee,Shashikumar D.G.,had not signed the attendance register until 4.15 pm on the inspection day.
The Malleswaram office,which reportedly handles around Rs.95 crore in transactions every month covering 106 DDOs,was also found lacking CCTV cameras and mandatory Lokayukta displays.
Several GPF and other bills were reportedly pending despite prescribed timelines.
At the Anekal Sub-Treasury,officials allegedly detected monthly transfers of Rs 5,000–Rs.6,000 among four employees,besides deficiencies in record maintenance and surveillance.
The inspections were conducted by 13 teams comprising 11 judicial officers and 39 police officers, besides Lokayukta staff.
Officials said detailed scrutiny of documents,bank accounts and digital transactions was continuing and further departmental or legal action would follow if financial misconduct is established.



