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 ₹23 lakh in digital transactions despite earning a monthly salary of around ₹70,000.

The inspections were conducted on Tuesday (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’ UPI transactions and reportedly found a ₹3,000 transaction allegedly received as a bribe from the pilot driver of the Lokayukta judge. The employee was questioned and directed to produce bank records.

At the Devanahalli District Treasury, officials found that an officer had declared only ₹1,500 in cash, while searches allegedly yielded ₹15,000 from a handbag, ₹1 lakh from a drawer and ₹20,000 from an envelope. The unexplained cash of ₹1.34 lakh was seized in the presence of witnesses.

At the Malleswaram Sub-Treasury, the UPI account of a First Division Assistant allegedly showed transactions totalling ₹23,00,855 between January and August 2026. The Lokayukta 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 the maintenance of mandatory documents. The Assistant Treasury Officer had allegedly failed to make cash declarations on several dates, while another employee had not signed the attendance register until 4.15 p.m. on the day of the inspection.

The Malleswaram office, which reportedly handles around ₹95 crore in transactions every month, covering 106 DDOs, was also found to be lacking CCTV cameras and mandatory Lokayukta displays. Several GPF and other bills were reportedly pending despite the prescribed timelines.

At the Anekal Sub-Treasury, officials allegedly detected monthly transfers of ₹5,000-₹6,000 among four employees, besides deficiencies in record maintenance and surveillance.

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.