Approximately 82,220 households in Karnataka are set to lose benefits under the Gruha Jyothi free-electricity scheme [1].

The move marks a significant crackdown on eligibility for the state's subsidy program, potentially leaving thousands of residents without government-funded power if they fail to verify their residency.

The Karnataka government is conducting a door-to-door verification process to ensure that only eligible households continue to receive the subsidy [1], [3]. Officials said that households refusing or unable to be verified will have their benefits withdrawn [1], [3]. The verification drive began in early July 2026 [2], [4], with activity reported in districts such as Belagavi and Kalaburagi [1].

An unnamed Energy Department official said, "These consumers have refused to provide any details when meter readers visited their homes, and therefore they will lose the benefits of the scheme" [1].

Challenges have emerged for specific populations, particularly those in rental properties. A tenant representative said that tenants are worried about losing free electricity because the verification drive does not take rental agreements into account [2]. Additionally, the initiative faces difficulties with homes that are currently unoccupied [3].

Praveen Patil Harwal, Chairman of the Karnataka Electricity Supply Company (GESCOM), said the revision aims to ensure that benefits reach only eligible households and that the state cannot continue to subsidize vacant or unverified homes [1].

As of early August, 55% of the verification process has been completed [3]. The Energy Department has set a final deadline of Aug. 30, 2026, for the survey [1], [3].

"We cannot continue to subsidise vacant or unverified homes."

The Karnataka government is shifting from a broad distribution of electricity subsidies to a more stringent, verified model to reduce fiscal leakage. By targeting vacant homes and unverified beneficiaries, the state aims to optimize public spending, though the exclusion of rental agreements suggests a potential gap in the current administrative process that could disproportionately affect mobile or low-income populations.