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Fake SC/ST Scholarship Fund Fraud | Report Scams

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Fake SC/ST Scholarship Fund Fraud

A massive scholarship fraud scheme has unfolded across multiple states in India, involving the alleged misappropriation of public funds meant for minority, Scheduled Caste (SC), Scheduled Tribe (ST), and Other Backward Class (OBC) students. According to reports, the fraud involved creating fictitious students, utilizing fake contact details, forging documents, and funneling money through non-operational or fake educational institutions registered on digital portals. In Uttar Pradesh’s Mainpuri district alone, authorities uncovered the alleged embezzlement of ₹16.78 lakh through ghost beneficiaries at an inter college.

State

Multiple States

First reported

June 2023

Amount alleged

₹800+ Cr (alleged)

Region

Pan India, multiple states including Uttar Pradesh, Himachal Pradesh, Assam, Bihar, Jharkhand, Chhattisgarh, and Punjab

Agency involved

Central Bureau of Investigation (CBI), state police departments, and state Minority Welfare Departments

Arrests

Multiple arrests including a college principal in Mainpuri and 19 accused in Himachal Pradesh

Charges or sections cited

Fraud, forgery, embezzlement, and criminal misappropriation

Status

Ongoing investigations, charge sheets filed in Himachal Pradesh, and schemes frozen centrally for over three years

The full story

Everything you need to know about this case, in one place.

On a broader scale, investigations by independent think tanks and central authorities revealed that hundreds of registered minority institutions were fake or non-operational, leading to a multi-crore loss of funds. A parliamentary panel noted that flagship pre-matric and post-matric scholarship schemes have remained frozen for over three years due to these gross irregularities, leaving genuine students deprived. Separately, in Himachal Pradesh, a related scholarship scam involving fake claims amounting to about ₹181 crore between 2013 and 2017 was investigated by the Central Bureau of Investigation (CBI).

Law enforcement and investigative agencies, including the CBI and state police departments, have taken multiple actions. In Mainpuri, a college principal was arrested while the manager remained absconding. In Himachal Pradesh, the CBI filed charge sheets against 20 institutions and 105 individuals, including education department staff, bank officials, and institutional owners, following previous arrests and searches. Across various states, numerous FIRs have been lodged, departmental proceedings initiated, and physical verification drives of educational institutes launched by authorities.

Not yet reported: The reports do not specify the final total amount recovered across all nationwide instances or the final judicial outcomes and court sentences for the accused individuals.

Where the case stands

The latest position in the reports we read.

Investigations and legal proceedings are ongoing across multiple states. The CBI has filed charge sheets against 20 institutions and 105 individuals in Himachal Pradesh, while national scholarship schemes remain frozen pending verification and reform.

Who was affected

Described in general terms; we do not name victims.

Genuine minority, Scheduled Caste, Scheduled Tribe, and Other Backward Class students across multiple states who were deprived of educational scholarships and welfare funds.

Timeline

Key dates as reported, oldest first.

November 2020Media reports surfaced indicating that scholarship funds were being siphoned by a nexus of bank staff, middlemen, school employees, and government officials.

2013 to 2017Period during which fake and fraudulent scholarship claims amounting to about ₹181 crore occurred in Himachal Pradesh.

2021-22Academic session during which ₹16.78 lakh was allegedly embezzled at an inter college in Mainpuri, Uttar Pradesh.

2023An independent economic policy research think tank found that at least 830 minority institutions registered on the National Scholarship Portal were fake or non-operational.

February 2025Institutes reported to respective state governments for verification, leading to physical inspections of thousands of cases.

March 13, 2025A parliamentary standing committee flagged concerns over continued budget cuts, under-utilisation of funds, and frozen scholarship schemes.

July 20, 2025An FIR was registered in Mainpuri based on a complaint filed by an assistant clerk from the district Minority Welfare Department.

How the scam worked

The method described in the reports.

Creating fabricated lists of students who either did not exist or were enrolled in other institutions.
Using fake mobile numbers and unverifiable contact information to make verification difficult and avoid immediate detection.
Utilizing fake letterheads to show false institutional affiliation and mislead the education department.
Failing to submit proper student documentation, such as Aadhaar numbers, or using the same Aadhaar accounts to withdraw scholarship funds for multiple non-existent students.
Opening fake bank accounts in nationalized banks to channel and divert scholarship funds.
Colluding with insiders, including education department staff and bank officials, to route funds to fake institutions or accounts.

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Sources and further reading

Optional. The full story is above; these are the original reports it was prepared from.

the420.inOriginal report m.thewire.inOriginal report newindianexpress.comOriginal report Primary source / searchOpens via Google News

Prepared by Report Scams, with the help of AI, from the published reports listed above. Check those reports for the latest. Cases here describe allegations. An FIR, arrest or charge is not a finding of guilt. To report a mistake, or to ask for a correction or removal, write to our Grievance Officer. See also the Safe Posting policy.