Massive Welfare Fraud Exposed in Madhya Pradesh: Living Workers Declared Dead to Siphon Government Funds

Bhopal:

A disturbing case from Satna district has once again highlighted serious flaws in Madhya Pradesh's welfare distribution system.

In an alleged fraud scheme that has caused embarrassment to the government, funds intended to assist impoverished laborers through the Sambal Yojana were misappropriated by falsely declaring living individuals as deceased.

These revelations emerged from Rahikwara Gram Panchayat, under Nagaud Janpad Panchayat, where hundreds of thousands of rupees were reportedly embezzled from government treasury accounts.

According to villagers' allegations, officials created counterfeit death certificates and withdrew funeral expenses and compensation payments meant for families of deceased workers.

On January 10, 2021, a funeral payment of Rs 5,000 and compensation of Rs 2 lakh were withdrawn using the name of Sajjan Chaudhary, a resident of Rahikwara Panchayat, after he was officially documented as deceased.

However, Sajjan is very much alive and currently struggling to prove his existence.

"They exploited my name, fabricated documents, and stole the money," he informed officials.

A comparable deception occurred on January 14, 2020, when Ganpat Kushwaha, son of Ramdulare Kushwaha, was declared dead.

The same Rs 2 lakh compensation was released under his name.

Villagers claim that the Panchayat Secretary and other officials collaboratively processed the paperwork and withdrew funds using forged documentation.

The fraudulent activity extended beyond the living.

When Ramcharan Chaudhary, son of Lalua Chaudhary, actually died on April 12, 2020, the compensation due to his family was diverted into someone else's account. His relatives remained uninformed, demonstrating how even legitimate beneficiaries were denied their rightful assistance.

Indignant villagers have demanded criminal investigation and severe consequences for all officials involved.

"This isn't a mistake, it's organized theft," one resident stated.

"The officers produced fake death certificates, misappropriated money intended for the poor, and assumed nobody would discover it."

District Panchayat CEO Shailendra Singh confirmed receiving a complaint during the public hearing.

"An investigation has been initiated. If the allegations are substantiated, strict action will be taken against those responsible. Similar cases, if discovered elsewhere, will also be thoroughly examined," Singh stated.

This is not an isolated incident.

In 2024, an NDTV investigation uncovered a massive scam in Bhopal, revealing how government officials declared living construction workers dead on paper to misappropriate crores of rupees from the Madhya Pradesh Building and Other Construction Workers Welfare Board.

The CAG's 2025 report subsequently validated NDTV's findings, revealing that in 142 cases, Rs 1.68 crore was deposited into 52 bank accounts that did not belong to registered workers.

The method was identical: fake death certificates, forged nominee accounts, and systematic plundering of compensation funds intended for laborers' families.