Ladki Bahin Yojana Fraud: 6 Major Scam Cases Filed Across Madhya Pradesh | Shocking Loopholes Exposed in Women’s Scheme
Six major fraud cases have been filed across Madhya Pradesh under the Ladki Bahin Yojana. Allegations include false documents, duplicate beneficiaries, and fund misappropriation. Here’s a deep dive into the ₹1,000 crore women’s welfare scheme under threat
The Ladki Bahin Yojana, a flagship welfare initiative launched to empower women across Madhya Pradesh, is under fire. In what has become a major embarrassment for the state administration, six separate cases of fraud have now been officially registered across multiple districts. The program, hailed as a game-changing welfare push, is now mired in controversy as allegations of fund misappropriation, fake beneficiaries, and systemic loopholes come to light.
The revelations have triggered a political storm and renewed concerns over transparency, verification, and accountability in large-scale government subsidy programs. As investigations unfold, it is increasingly evident that while the scheme was designed to uplift women, it is now being exploited by fraudsters for personal gain.
Launched by the Madhya Pradesh government in 2023, the Ladki Bahin Yojana (also referred to as Ladli Behna Yojana) is a direct benefit transfer (DBT) scheme aimed at providing financial support of ₹1,000 per month to eligible women aged 23 to 60 years. The program was intended to:
- Promote financial independence among women
- Reduce poverty in low-income households
- Provide monthly assistance for essential needs
- Empower women to participate in household decision-making
Since its rollout, the scheme has covered millions of women across rural and urban Madhya Pradesh, becoming one of the largest welfare initiatives in the state.
Despite its noble intent, recent developments reveal that the scheme has become a magnet for manipulation and corruption. Six cases of fraud have now been officially filed in various districts, including Bhopal, Indore, Gwalior, Jabalpur, Ujjain, and Rewa.
1. Bhopal: False Documents Used to Create Ghost Beneficiaries
Authorities in Bhopal uncovered a racket where agents helped in enrolling non-existent women into the database using forged Aadhaar cards and voter IDs. The scam led to nearly ₹5 lakh in monthly payouts to fake accounts before it was detected.
📍 2. Indore: Duplicate Beneficiary Accounts
In Indore, it was revealed that multiple women were receiving the benefit twice or even thrice by tweaking minor spelling changes in their name or using different mobile numbers and bank accounts. Officials estimate over 1,200 cases of duplication in just one municipal ward.
3. Gwalior: Bribes for Enrollment
An undercover operation in Gwalior found local intermediaries charging ₹500–₹1,000 bribes from applicants to “ensure faster approval” of their applications, even for ineligible candidates. Police arrested two individuals after a sting operation exposed the racket.
4. Jabalpur: Government Employees Enrolled as Beneficiaries
A probe in Jabalpur showed that wives of government employees, who do not fall under the scheme’s financial eligibility, were receiving benefits due to manipulated income declarations. Action has been recommended against six junior staffers involved in data entry fraud.
5. Ujjain: Use of Dead People’s Documents
A shocking revelation from Ujjain showed that documents of deceased women were reused by agents to register new applicants. In at least 47 cases, pensioners who had passed away were still receiving the monthly DBT into reactivated bank accounts.
6. Rewa: Political Interference in Selection Process
Whistleblowers in Rewa alleged that local political figures influenced the approval process, ensuring inclusion of party loyalists over truly deserving candidates. An internal audit confirmed dozens of irregular approvals in one panchayat alone.
While the exact financial impact is still being assessed, preliminary estimates suggest that tens of crores of rupees may have been diverted through fraudulent means over the past year. With ₹1,000 being disbursed monthly to millions of women, even a small percentage of manipulated accounts can result in massive losses to the state exchequer.
According to internal sources, the scheme’s monthly budget is nearly ₹1,000 crore, meaning even a 1% fraud rate equals ₹10 crore in misuse each month.
Reacting to the reports, the Madhya Pradesh government has:
- Ordered a statewide audit of the scheme
- Suspended over 30 officials and data entry operators
- Filed 6 FIRs under charges including cheating, criminal conspiracy, and corruption
- Announced the introduction of biometric verification and facial recognition tools in the next update of the scheme
Chief Minister Mohan Yadav issued a stern warning, stating:
“No one who misuses this scheme for personal gain will be spared—be it an official, a political worker, or a citizen.”
However, critics argue that the government failed to set up strong verification systems at the time of launch and that corruption was inevitable in such a large-scale cash transfer program without real-time oversight.
Public policy experts believe that the Ladki Bahin Yojana fraud highlights systemic vulnerabilities in how welfare schemes are implemented in India.
Dr. Nisha Verma, a public finance analyst, said:
“The intention behind DBT schemes is good, but execution often lacks robust back-end controls. Whenever money is distributed at scale, without biometric or real-time verification, there will be attempts to exploit the system.”
The fraud cases have become a political flashpoint in Madhya Pradesh, with the opposition Congress party accusing the ruling BJP government of failing to safeguard public money.
Congress spokesperson Sujata Tripathi said:
“This is not just financial corruption—it’s a betrayal of poor women who genuinely needed support. The ruling party turned a welfare scheme into a loot scheme.”
In response, BJP leaders argue that the very act of detecting and prosecuting fraud shows the government’s commitment to clean governance.
The following steps are expected over the coming weeks:
- Expansion of the audit to cover all 52 districts of Madhya Pradesh
- Random verification drives at beneficiary addresses
- Introduction of AI-powered de-duplication systems to flag suspicious entries
- Deployment of independent monitoring agencies for oversight
- Potential rollback of benefits from fake or duplicate accounts
