Massive scholarship ‘scam’ unearthed: Minority Affairs Ministry investigates misappropriation across 21 states

New Delhi: In an exclusive revelation, an ongoing investigation has unveiled that among the 1572 minority institutions in India spanning across 21 states, and the union territory of Jammu and Kashmir, an astounding 830 of them have allegedly falsely obtained Rs 144 crore in scholarships over the last five years. A source within the Ministry of Minority Affairs shared this exclusive information with CNN-News18 on Saturday.

This revelation comes years after the Minority Affairs Ministry initiated an inquiry into the distribution of pre-matric scholarships in Jharkhand, highlighting concerns over fund diversion involving intermediaries, bank officials, school staff, and government employees. The recent report claims that the scam spans 21 states and uncovers almost 4 crore fraudulent bank accounts with completed KYC formalities. Remarkably, around 80 percent of these scholarships are believed to be allocated to Muslim communities. The investigation’s scope includes fabricated madrasas, tribal schools, and the alleged involvement of complicit officials. According to details from the inquiry, anomalies have emerged. In the academic year 2018-2019, a single mobile number was linked to a significant number of 2239 scholarships. Similarly, between 2019 and 2020, 577 scholarships were connected to a single mobile number.

The National Minority Scholarship Scheme, launched during 2007-2008 under the National Minority Commission, aimed to financially assist students from class 1 to PhD levels. The digitization process began in 2016, enabling direct benefit transfers and enhancing transparency. Scholarships were disbursed through the National Minority Commission and the National Scholarships Portal. For the academic year 2022-2023, approximately 26 lakh applications have been approved.

CNN-News18’s investigation and sources within the Ministry reveal that Minister of Minority Affairs, Smriti Irani, expressed concerns after assuming her role. The probe highlighted that scholarships for students from classes 1 to 8, totaling nearly 40 lakh applicants, were being granted despite free education in government institutions. This prompted a closer evaluation of the necessity for such scholarships.

Significantly, it was found that there was no outcry when scholarships for classes 1 to 8 were halted, as free education was already provided by government institutions. Moreover, these scholarships for minorities were fully funded by the Centre, eliminating the previous 50-50 state participation.

The investigation also identified various red flags, including the concentration of accounts in specific bank branches, a single SIM card linked to multiple scholarships within the same class, and discrepancies in distributing scholarships meant for hostels, tribal schools, and girls. An alarming discrepancy was also noticed in the number of scholarship applications surpassing actual student enrollments.

This ongoing investigation has brought to the surface a deeply rooted concern, raising questions about transparency, accountability, and fair distribution of educational resources within minority communities in India.