Tamil Nadu | PMAY funds swindled in the name of dead people

Officials in Tiruvarur district booked for fraudulently disbursing PMAY (G) funds to ineligible individuals, using forged documents.

Several officials from the Rural Development and Panchayat Raj Department in Tiruvarur district have been booked for fraudulently disbursing funds under the Pradhan Mantri Awas Yojana (Gramin) to 43 ineligible individuals near Mannargudi.

A preliminary investigation has revealed that of the original 43 beneficiaries who were supposed to receive assistance, five had died over a decade before their names were added to the list, while another 10 passed awy during the finalisation process without receiving any benefits. The accused officials created a fraudulent list of beneficiaries and disbursed funds to the tune of ₹73 lakh using forged documents.

The Directorate of Vigilance and Anti-Corruption (DVAC) has filed a case against 10 officials, including five Block Development Officers (BDOs) who served in Mannargudi between 2016 and 2020. The officials have been accused of conspiring to divert PMAY (G) funds to ineligible individuals who neither owned land nor constructed houses under the scheme.

The investigation was initiated based on specific information that some PMAY (G) beneficiaries had not constructed houses despite being listed. A special DVAC team conducted an inquiry, uncovering that none of the original 43 beneficiaries received financial aid. Instead, records showed that they were credited with ₹1.2 lakh financial assistance and construction materials worth ₹50,000 each.

Forged documents

A detailed probe revealed that the accused officials replaced the original beneficiaries with an alternative list of fake recipients. They created forged documents, including stage-by-stage photographs to depict progress in construction, and instructed the new “beneficiaries” to open bank accounts for digital fund transfers.

The scheme’s protocols, which mandates officials to verify beneficiaries’ identities, financial status, proof of address, and construction progress, were deliberately ignored. The accused officials also failed to record the original list of beneficiaries in the Village Resolution Register, instead transferred the funds to the fraudulent list.