Stories
Karnataka Minister Alleges Centre Withheld Rs 2,186 Crore in Grants, Cites Discrimination
N
News18•25-09-2026, 16:30
Karnataka Minister Alleges Centre Withheld Rs 2,186 Crore in Grants, Cites Discrimination
- •Karnataka Minister Eshwar Khandre alleged the Centre withheld Rs 2,186.20 crore in 15th Finance Commission grants for 2025-26 due to a "discriminatory policy."
- •The Centre imposed a condition on Karnataka regarding uploading fund receipts to the e-GramSwaraj portal, a condition Khandre claims was not applied to states like Assam, Bihar, Gujarat, and Uttarakhand.
- •Khandre stated that a technical issue caused a difference of about Rs 225 crore between funds received by gram panchayats and the amount reflected on the portal, calling it a "minor issue" for withholding significant funds.
- •He provided examples of other states receiving full grants despite larger discrepancies in portal acknowledgements, alleging the Centre grants exemptions to states of its choice.
- •The minister announced that Karnataka would approach the Supreme Court over the issue, citing the "inhumane" withholding of funds during drought conditions and repeated unanswered representations to the Centre.
Key Questions Answered
Minister Eshwar Khandre alleged that the Centre withheld Rs 2,186.20 crore in 15th Finance Commission grants due to Karnataka for the 2025-26 financial year.
Karnataka announced that it would soon approach the Supreme Court over the Centre's decision to withhold the grants while the state faces drought conditions.
The Centre withheld funds due to a minor issue where physical transfers to gram panchayats during 2024-25 were not fully reflected on the e-GramSwaraj portal because of a technical glitch.
