CBI books officials in several States for misappropriating funds meant for scholarship to students with disabilities

The Central Bureau of Investigation (CBI) has registered a case against government officials and private individuals in eight States, including Tamil Nadu and Karnataka, for allegedly siphoning off ₹11.41 crore meant for disbursing scholarships to students with disabilities.

The funds were fraudulently drawn in the names of fictitious beneficiaries purportedly studying in various colleges across the country, including two in Tamil Nadu.

The case stems from a complaint filed on December 19, 2023, by the then Secretary of the Ministry of Social Justice and Empowerment, under the Department of Empowerment of Persons with Disabilities (Divyangjan). Besides Tamil Nadu and Karnataka, the offences were reported in Odisha, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Rajasthan and Jammu and Kashmir.

Based on the complaint, the CBI initiated a preliminary inquiry into alleged irregularities in the disbursement of funds under the ‘Umbrella Scholarship Scheme’.

Physical verification done

As part of the probe, the CBI’s Anti-Corruption Unit, Delhi, conducted physical verification of around 100 educational institutions across the country. The agency found that 18 colleges were either non-existent or not registered on the National Scholarship Portal (NSP), or had no students with disabilities receiving scholarships. Another 10 institutions were also suspected to be involved in the fraud.

Under the scheme, students are required to apply online through the NSP. For scholarships exceeding ₹50,000 per year, applicants must upload supporting documents such as photographs, proof of age, disability certificates, and fee receipts. Applications are processed by designated nodal officers on behalf of State governments, who approve the final list of beneficiaries for disbursal. 

Colleges either defunct or non-existent

During verification of scholarships disbursed to 926 students across 28 institutions, the CBI found that several colleges were either defunct or non-existent. Despite this, scholarships were claimed and disbursed in the names of purported students, allegedly in collusion with certain officials.

In one instance, Satyam College of Education, an unaided private college in Jammu that had already been closed, was shown to have students receiving scholarships in 2022-23. The defunct institution’s principal stated that he was unaware of any such scheme being implemented at the college.

Additionally, more than 10 institutions, including Nehru Private Industrial Training Institute in Tiruchi (T.N.) and Government Industrial Training Institute in Dindigul (T.N.) informed investigators that the individuals listed as beneficiaries had never studied at their facilities.

The inquiry concluded that during the academic year 2022-23, scholarship funds meant for students with disabilities were fraudulently obtained in the names of fake beneficiaries as part of a criminal conspiracy involving representatives of educational institutions, nodal officers, and other public servants, resulting in significant loss to the public exchequer.