The total expenditure incurred in the scheme in the five states was Rs 18,647 crore in five years benefitting 1.36 crore students from the community.
The Comptroller and Auditor General (CAG) has accused five state governments of poor planning in the disbursement of post-matric scholarships for Scheduled Castes (SC) community students.
The total expenditure incurred in the scheme in the five states was Rs 18,647 crore in five years benefitting 1.36 crore students from the community. It has been found that instead of disbursing money to the students, the states diverted funds from it for maintenance of e-scholarship portal or purchase of stationary, computers and peripherals.
At the request of the Ministry of Social Justice and Empowerment, a performance audit of the implementation of the scheme covering a period of five years from 2012 to 2017 in five states -- Karnataka, Maharashtra, Punjab, Tamil Nadu and Uttar Pradesh -- was taken upon by CAG.
There was systemic gaps in scheme guidelines as well as lack of planning, poor financial management and irregularities in disbursement of scholarship funds with a financial implication of Rs 581.68 crore.
There was Rs 28.94 crore diversion of scholarship funds, delay in payment of scholarship to 18.58 lakh students, non-disbursal of scholarship amounting to Rs 375.30 crore, denial and short reimbursement of scholarship of Rs 125.82 crore, Rs 49.67 crore excess payment of scholarship to 1.88 lakh students, Rs 1.95 crore scholarship paid to 374 ineligible students. Also discrepancies and inconsistencies in data generated through web portals leading to financial implication of Rs 455.98 crore.
Further, the implementation of the scheme was constrained by inadequate allocation of funds by the Central government as well as poor financial management by the states. Centre could not meet the growing demand for funds from the states which resulted in accumulation of arrears amounting to Rs 5,368 crore in the five states.
Even the available funds could not be fully utilised in states of Maharashtra, Tamil Nadu and Uttar Pradesh with Rs 375.30 crore remaining undisbursed due to mismatch of bank details which resulted in depriving eligible students of the scholarships.
Further, Rs 28.94 crore of scholarship funds was diverted in Karnataka and Maharashtra for maintenance of e-scholarship portal and purchase of stationery, computers during 2012-17.
The states also failed to ensure adherence to the scheme guidelines relating to eligibility of beneficiaries and procedures for processing of applications and disbursal of scholarship funds.
Non-adherence to the scheme guidelines relating to revision of income ceiling by Maharashtra and Uttar Pradesh with effect from academic session 2013-14 resulted in denial of benefit to eligible students in the states.
The CAG also stated that Punjab, Maharashtra, Tamil Nadu and Uttar Pradesh were also not covering certain components of the scholarship that is thesis allowance, book allowance, disability allowance and study tour charges.
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