How Maharashtra education officers created thousands of ghost teachers to siphon off Rs 3,000 crore

Economic Times

21-07-2025

A major scam has been unearthed in Maharashtra's education sector. Officials allegedly created fake teacher identities on the Shalarth portal. This was done to embezzle public funds. The estimated amount is between Rs 2,000 to 3,000 crore. Some arrests have been made. A Special Investigation Team is probing the matter. The scam involved multiple zones including Mumbai and Nagpur.
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What is a Shalarth ID?
How the scam was carried out
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Weaknesses in the system
Bribes for backdated dues
Extent of the scam and official action
Need for stronger checks
Senior education officials in Maharashtra have been accused of creating thousands of fake teacher identities on the government's salary and HR portal, Shalarth, to siphon off public money. The scam, which involves both Mumbai and Nagpur zones, could be worth Rs 2,000 to 3,000 crore, according to government estimates. Some arrests have already been made and the state government has announced a Special Investigation Team (SIT) to probe the matter, a TOI report stated.A Shalarth ID is a unique identity issued to government and aided school teachers and staff in Maharashtra. It is required to access salary, benefits, and employment records.Former deputy director of education Ram Pawar said, "Once there is a vacancy and the school has selected the candidate, the school issues an appointment order. The candidate then takes this appointment order to the deputy director of education of that zone, who approves it and provides the candidate with a Shalarth ID and password. This ID is used to access salary and benefits, without it, the candidate cannot be paid."The Shalarth portal also stores financial and personnel data for all education employees in the state.According to Pawar, the authority to issue Shalarth IDs rests with the deputy director of education. The scam involved issuing bogus IDs to fictitious individuals. Bank accounts were opened using fake documents and photos, and salaries were withdrawn in their names.Officials have also been accused of issuing Shalarth IDs to unqualified individuals who secured jobs as teachers and headmasters after allegedly paying bribes ranging from Rs 20 to 30 lakh to school management and government staff.While government-run schools have tighter oversight, aided schools in Maharashtra operate with limited scrutiny. This gap allowed some officials to exploit the system by appointing unqualified people, creating fake job posts, and withdrawing salaries in their names.In Nagpur, fake IDs were allegedly given to teachers and staff who bribed school management and education officers. Teachers and other staff have also been accused of helping officials generate fake IDs and bank accounts in return for a share of the siphoned funds.In addition to fake appointments, officials allegedly demanded bribes from genuine teachers to release backdated dues and salary increments after promotions.On July 18, Chief Minister Devendra Fadnavis told the state assembly that the scam may involve Rs 2,000-3,000 crore. A Special Investigation Team has been set up to investigate.State school education minister Dada Bhuse has suspended Mumbai's deputy director Sandeep Sangave. Ulhas Narad, deputy director of education for Nagpur, has been arrested.Former education official Ram Pawar said, "An earnest effort must be made to examine records. The process cannot be top-down. Whatever the upper management decides, the onus must be on field officers who need to conduct rigorous checks."