Bengaluru, February 3, 2026 — Over 52,000 women in Karnataka have been denied benefits under the flagship Gruha Lakshmi scheme due to their names appearing in income tax or GST records, according to statements from the state government.
The revelation came during a session in the Legislative Council on February 2, when Minister for Women and Child Development Laxmi Hebbalkar informed members that these women were ineligible under the scheme's rules. The Gruha Lakshmi scheme, one of the Congress government's key "five guarantees" launched in 2023, provides ₹2,000 monthly financial assistance to eligible women heads of households to support family expenses.
The scheme currently covers approximately 1.26 crore beneficiaries across the state. Eligibility requires the woman to be the head of a family holding a Below Poverty Line (BPL), Above Poverty Line (APL), or Antyodaya ration card. Crucially, neither the woman nor her husband (or spouse) should be an income tax payer or registered under GST, as the program targets economically weaker sections and excludes those with taxable income or business filings.
The minister explained that many of the affected women were involved in small-scale businesses or minor financial transactions, leading to their inadvertent inclusion in tax databases despite modest earnings. "Tax-payers are not eligible for the benefit as per the terms of the scheme," Hebbalkar stated, adding that the issue is being addressed. Efforts are underway to review and resolve cases where inclusions in tax records may not accurately reflect the beneficiaries' economic status.
The disclosure follows earlier actions by the Women and Child Development Department, which removed over 2.13 lakh ineligible beneficiaries in 2025 after linking them to income tax or GST filings. Opposition members, including BJP MLC P.H. Poojar, highlighted specific instances, such as 712 women in Bagalkot district being removed for taxpayer status, questioning the implementation.
The Gruha Lakshmi scheme has faced various challenges since its rollout, including delays in payments, technical glitches in direct benefit transfers, and debates over fund management. Despite these hurdles, it remains a cornerstone of the state's welfare initiatives aimed at empowering women in low-income households.
Government officials have reiterated that the exclusions ensure benefits reach only the intended deserving recipients, while ongoing reviews aim to minimize wrongful denials for genuinely eligible women.
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