3 min readBengaluruApr 2, 2026 04:59 PM IST
Observing that “ultimately it is the oppressed class that will be affected if any order is passed,” the Karnataka High Court on Thursday refused to grant interim relief directing the state government to stop or postpone the disbursal of funds under its guarantee schemes until the bypolls in the Bagalkot and Davanagere South constituencies are concluded.
A single judge bench of Justice Sachin Shankar Magadum said orally, “This is not the first time the scheme is launched, and it has been ongoing.”
The bench also warned the petitioner, Goutam Kumar U Jain, who is an Independent candidate contesting from the Davanagere South Constituency. “It may also affect your prospects,” said the bench.
Appearing for the state government, Advocate General Shashi Kiran Shetty strongly opposed the petition. “The petition is not bona fide, and an abuse of process, and the election commission has the power to take action in accordance with law, and the petition should not be entertained.”
Senior Advocate Arun Shyam, who represented the petitioner, referred to the Gruha Lakshmi, Yuva Nidhi and Anna Bhagya schemes and contended that they are given to beneficiaries in cash and kind.
Shyam also argued that the crucial question is whether the funds are disbursed to beneficiaries before or after the Model Code of Conduct came into force, and that the state government should obtain the Election Commission’s permission to disburse amounts under the guarantee schemes.
Counsel for the Election Commission of India (ECI) informed the court that it has decided to seek a report from the Chief Secretary, after which it will decide and take action.
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To which Shetty said, “ECI is not toothless, and they can enforce, if we violate.”
Shetty also pointed out that the beneficiaries under the schemes have already been identified, and no new persons are being given benefits. “These are all welfare schemes made under the Directive Principles of State under the Constitution. We are giving basic needs, which we are giving to people who are identified and are not new people,” he added.
The Karnataka Government informed the court that in Davangere, there are 56,000 beneficiaries across 3 districts, and 2,500 to 3,000 are beneficiaries of the Yuva Nidhi youth employment scheme. The government added that under the Gruha Lakshmi, there are around 58,000 beneficiaries.
Shetty also referred to a circular issued by ECI, which permits continuation of existing schemes without reference to the poll body when the model code of conduct comes into force. “There is no prohibition,” he said.
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Following this, the court directed the state government to file a detailed reply to the petition and adjourned the hearing.
Elections in the two constituencies are scheduled for April 9.
The five schemes, Gruha Lakshmi, Gruha Jyothi, Anna Bhagya, Shakti, and Yuva Nidhi, were implemented in the state after the Congress party came to power in 2023.
