A flagship welfare program, the Pradhan Mantri Awas Yojana (PMAY), is under a cloud of controversy in Uttar Pradesh’s Prayagraj district after investigators uncovered widespread fraud. More than 9,000 individuals allegedly siphoned off housing funds despite already owning homes, while parallel scams in pension schemes exposed systemic loopholes and official complicity.
A Scheme for the Poor, Exploited by the Well-Off
Pradhan Mantri Awas Yojana, launched in 2015 to provide affordable housing to millions, is now facing allegations of misuse in Prayagraj. According to reports, over 9,000 beneficiaries wrongfully claimed Rs 1.20 lakh each under the scheme. Investigators found that many recipients already owned houses some even two-storey structures but still filed false claims, backed by forged documents.
In Shankargarh block alone, 3,127 beneficiaries received the first installment without laying a single brick. Local inspections confirmed that funds meant for the homeless were redirected into private pockets. Authorities are now preparing legal action to recover the money and have placed officials who sanctioned the applications under investigation.
Data Protection and DPDP Act Readiness: Hundreds of Senior Leaders Sign Up for CDPO Program
Pension Schemes Caught in a Similar Web of Fraud
The controversy is not confined to housing. Pension schemes in the region have also been marred by massive irregularities, revealing a systemic failure in monitoring and accountability. Reports highlight that over Rs 40 lakh was wrongfully drawn through fraudulent claims, including cases where beneficiaries had remarried or died, yet pensions continued.
- In the widow pension scheme, over 100 women were either deceased or remarried, but payments worth Rs 12 lakhstill went out.
- In the old-age pension scheme, 2,351 beneficiaries were found to be deceased, yet their families continued withdrawals.
Officials admitted that once money is transferred directly into accounts, there are no robust provisions for recovery, leaving taxpayers to bear the loss.
A Larger Question on Welfare Governance
The revelations cast a shadow on the effectiveness of welfare governance in India. While PMAY is considered one of Prime Minister Narendra Modi’s flagship welfare initiatives, promising affordable homes under PMAY-Urban and PMAY-Gramin, the Prayagraj scandal underscores how poor verification and administrative loopholes can derail noble intentions.