NEW DELHI – The Comptroller and Auditor General (CAG) of India revealed a significant financial lapse in minority scholarship schemes. An audit found at least Rs 9 crore was disbursed to over 11,000 beneficiaries who were either untraceable or linked to non-operational schools. This occurred during the 2020-21 to 2022-23 financial years.
The CAG report highlighted further irregularities. Scholarships were granted to candidates who did not meet income criteria or failed to maintain minimum academic marks. These issues impacted both pre-matric and post-matric scholarship schemes for minority students.
Scholarship Schemes and Audit Scope
Pre-matric and post-matric scholarships aim to support students from historically marginalized communities, including Scheduled Castes, Scheduled Tribes, and minorities. The pre-matric scheme assisted students from Classes 6 to 10. The post-matric scheme supported students from Class 11 onwards. In 2022, the central government discontinued pre-matric support for Classes 1 to 8. It stated these students were covered under the Samagra Shiksha Abhiyan and Right to Education Act.
The Ministry of Minority Affairs manages the scholarship for minorities. The CAG audit examined scholarship disbursals from 2020-21 to 2022-23. It included a field audit covering 2017-18 to 2020-21. Auditors sampled 174 districts across 27 states and seven union territories . The review included 34,418 pre-matric applications from 1,589 institutions . It also covered 30,723 post-matric applications from 1,635 institutions .
Ineligible and Untraceable Beneficiaries
The audit uncovered several categories of ineligible recipients:
- 8,669 applicants could not be found in school or institution records. These students received Rs 681.71 lakh .
- 2,717 students received scholarships, but their institutes or schools were "non-operational." This group received Rs 246.65 lakh .
In total, Rs 928.36 lakh (approximately Rs 9.28 crore ) went to these untraceable or institutionally unverified beneficiaries. The original source reported approximately Rs 9 crore.
Criteria Violations and Excess Payments
The CAG also found instances where beneficiaries did not meet academic requirements or received inappropriate payments:
- 1,902 pre-matric students with less than 50% marks in the previous class received Rs 37.40 lakh . Scheme guidelines require a minimum of 50%.
- 1,725 post-matric students also received scholarships worth Rs 104.10 lakh despite failing to meet academic requirements.
- Some families received scholarships for more than two students, violating scheme rules.
Significant amounts were disbursed as multiple or excess scholarships:
| Scholarship Type | Multiple Scholarships (Students) | Multiple Scholarships (Amount) | Excess Scholarships (Students) | Excess Scholarships (Amount) |
|---|---|---|---|---|
| Pre-Matric | 472 | Rs 18.04 lakh | 2,854 | Rs 90.74 lakh |
| Post-Matric | 4,794 | Rs 311.61 lakh | 7,883 | Rs 302.15 lakh |
Payment Delays and Systemic Weaknesses
The audit also noted "substantial" scholarship amounts for a given financial year often "spilled over" to the next. This indicates significant payment delays. The Ministry lacked a mechanism to monitor or quantify these delays. This affected the objective of providing timely financial support to students in need.
The CAG report attributed these issues to "systemic deficiencies" and "weaknesses in controls." It specifically cited "sole reliance" on the National Scholarship Portal (NSP) for monitoring. The report stated this indicated a weak control mechanism for beneficiary verification.
Ministry Response and CAG’s Assessment
The Ministry of Minority Affairs responded by stating NSP is an evolving platform. It claimed steps were taken in 2019-20 to improve transparency and robustness. These steps included Aadhaar exception handling, registration of institutes with valid codes, and Know Your Customer (KYC) verification for institutes.
However, the CAG found these checks "inadequate." It pointed to irregularities independently identified by the National Council of Applied Economic Research (NCAER), a third-party evaluator. The CAG recommended the Ministry review scheme implementation and strengthen mechanisms to ensure only eligible applicants receive benefits.