Massive Alleged Fraud Stirs Up Controversy Over Maharashtra's Ladki Bahin Yojana, Leaving Its Well-Meant Aim for Girls' Welfare in Doubt
The Mukhyamantri Majhi Ladki Bahin Yojana, a welfare scheme designed to aid low-income women families in Maharashtra, has been embroiled in a significant financial scandal. Over 14,000 men fraudulently received payments under this scheme, resulting in a loss of approximately ₹1,640 crore to ineligible beneficiaries over 12 months [1][5].
Scale of Fraud
The scheme, which initially enrolled around 2.38 crore women, saw over 26 lakh (2.6 million) beneficiaries found ineligible after verification. These ineligible beneficiaries included men, families with multiple benefit claims, and duplicate claims across government schemes [3][5]. Opposition leader Supriya Sule has alleged that the total fraud could potentially reach ₹4,800 crore, demanding a Special Investigation Team (SIT) probe and a full audit to address the verification lapses that allowed ineligible beneficiaries to claim funds [3].
Political Reactions
The scheme, launched shortly before the 2024 state elections, was credited with aiding the Mahayuti coalition’s electoral victory [1]. However, following the revelations, the Nationalist Congress Party (NCP) and other opposition parties have demanded transparency, accountability, and a thorough investigation into the irregularities [3]. Demonstrations and political outcry have ensued due to the extent of the fraud [2].
Measures Taken to Prevent Future Irregularities
In response, the Maharashtra government has suspended disbursements to the 26.34 lakh ineligible accounts as a precautionary measure starting June 2025 [5]. District collectors have been tasked with conducting detailed reviews of these suspended accounts to restore benefits only to genuinely eligible beneficiaries [5]. The Women and Child Development Department, along with the Department of Information and Technology, have carried out audits and data verifications across state departments to identify irregularities [5].
Officials have acknowledged that the online registration process facilitated fraudulent enrolment, indicating a need for stronger verification mechanisms [1]. To address this, the government is tightening scrutiny measures and auditing the back-end systems [5]. The need for transparent reporting mechanisms for red-flagged cases has been emphasized, as well as the importance of robust beneficiary validation using biometric and linked public databases [5].
The poor validation of Aadhaar-linked data was highlighted in the mismanagement of the Ladki Bahin Yojana. To rectify this, the government has assigned verification duties to local district collectors, and there has been a lack of automatic cross-verification with asset ownership databases during the online application process [1][5].
In summary, the Mukhyamantri Majhi Ladki Bahin Yojana scandal exposed major systemic failures in beneficiary verification, causing a massive financial loss and eroding trust in a politically significant welfare scheme. The government has responded with suspensions and reviews, while opposition leaders demand a special probe and greater transparency to prevent recurrence [1][3][5].
- The financial scandal surrounding the Mukhyamantri Majhi Ladki Bahin Yojana, a scheme aimed at women's health and wellness in Maharashtra's low-income families, has unsettled the health-and-wellness industry and the general news, with over 14,000 men fraudulently receiving payments, causing a loss of approximately ₹1,640 crore.
- The political landscape has been shaped by this scandal, with opposition leader Supriya Sule alleging the total fraud could potentially reach ₹4,800 crore, demanding a Special Investigation Team (SIT) probe and a full audit.
- The scheme, launched before the 2024 state elections, has sparked controversy, with the Nationalist Congress Party (NCP) and other opposition parties demanding transparency, accountability, and an inspection of irregularities.
- In response, the Maharashtra government has suspended disbursements to ineligible accounts and is tightening scrutiny measures, while emphasizing the need for transparent reporting mechanisms and robust beneficiary validation.
- This incident has shed light on the poor validation of Aadhaar-linked data, leading the government to assign verification duties to local district collectors and advocate for stronger verification mechanisms in the future.
- The financial scandal and the subsequent political reactions have highlighted the importance of policy-and-legislation reforms in the banking-and-insurance and personal-finance sectors, particularly in the context of crime-and-justice and politics.
