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India Today
23-05-2025
- Business
- India Today
Why lens is on BJP minister's sons in Rs 71 cr Gujarat NREGA scam
In a stark betrayal of public trust, a sophisticated embezzlement under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has surfaced in Gujarat's Dahod district, implicating the sons of minister of state for panchayat and agriculture Bachubhai of siphoning off Rs 71 crore to Rs 75 crore meant for rural employment and infrastructure reveal a calculated exploitation of one of India's flagship welfare programmes. Operating in the tribal-dominated talukas of Devgadh Baria and Dhanpur from January 2021 to December 2024, this scandal underscores systemic vulnerabilities in governance and raises questions about political accountability in a state long projected as a model of administrative a backward region bordering Madhya Pradesh, relies heavily on MGNREGA to provide employment to its tribal population, who otherwise migrate to urban centres for daily wage labour due to limited local opportunities. The scam, uncovered through diligent audits and local complaints, highlights how fraudulent practices undermined the livelihoods of the state's most vulnerable communities while exposing the complicity of government officials and politically connected scam involved the misappropriation of MGNREGA funds through fictitious projects, forged documents and payments to unauthorised firms. The key accused, Balwant Khabad and Kiran Khabad, the elder and younger sons of minister Bachubhai Khabad, allegedly orchestrated the fraud through their firms, Shri Raj Construction Co. and Shri Raj Traders. These entities allegedly received payments—Rs 30.04 crore for Shri Raj Traders and Rs 82 lakh for Shri Raj Construction Co.—without participating in mandatory bidding processes, accounting for over 40 per cent of the embezzled The fraud came to light in April 2025 during audits and field inspections by the District Rural Development Agency (DRDA) in Dahod, led by director B.M. Patel. Inspections in villages such as Kuva, Redhana and Simamoi revealed that projects such as of roads, check walls and stone bunds, reported as completed, were either non-existent or complaints about absent infrastructure corroborated the audit findings, which flagged 32-35 firms for receiving payments for work documented only on paper. On April 24, Patel filed a first information report (FIR) with the Dahod police, citing charges of cheating, forgery and breach of trust against unidentified individuals, including government employees and firm investigation, led by deputy superintendent of police Jagdish Bhandari, had resulted in 11 arrests as of May 20, including Balvantsinh and Kiran Khabad, their nephew Dilip Chauhan (a former assistant programme officer for MGNREGA), and other officials such as Rasik Rathwa (deputy district development officer) and a few proprietors of the implicated firms. The probe revealed a nexus of collusion, with officials bypassing tendering protocols and clearing fraudulent bills, exposing deep-rooted administrative scam has ignited a political firestorm, providing the Opposition Congress with ammunition to challenge the BJP narrative of clean governance. Congress legislator Amit Chavda had first raised concerns about MGNREGA irregularities in Dahod during the Gujarat legislative assembly's Budget session on March 5, citing 27 complaints in state government acknowledged only one case involving Rs 18.41 lakh and claimed action against the responsible official. However, the scale of the fraud became undeniable following the DRDA's FIR and subsequent Congress, which formed a fact-finding committee this January to investigate MGNREGA irregularities, has accused the BJP of shielding Khabad and his family. Chavda estimates the scam's value could exceed Rs 100 crore and alleges similar fraud in other Dahod talukas under schemes such as Nal Se Jal.'This is a systemic robbery of the poorest, enabled by the state's inaction,' Chavda stated, demanding Khabad's removal from the cabinet and a special investigation team (SIT) probe. The Opposition's focus on Dahod's tribal communities, a vote-bank that shifted to the BJP in the assembly elections in 2022, underscores the scam's potential to reshape electoral BJP's response has been conspicuously restrained, reflecting the delicate position of managing a scandal involving a senior leader. Khabad, a four-time MLA from Devgadh Baria and a prominent OBC Koli community leader, has remained silent. Party insiders suggest Khabad may be dropped in an anticipated cabinet reshuffle, potentially timed with the appointment of a new state BJP president. This move would aim to mitigate political damage in a state where the BJP has maintained dominance by projecting administrative lack of proactive measures, such as a high-level probe or public acknowledgment, has fuelled perceptions of a cover-up, contrasting with the central government's swift actions against alleged MGNREGA irregularities in Opposition-ruled states such as West the scam could erode the BJP's credibility among tribal voters, a demographic it has worked to consolidate over the last decade. The Congress's aggressive response, coupled with its historical ties to tribal communities, positions it to capitalise on public discontent. However, the Opposition must translate this outrage into sustained electoral momentum to challenge the BJP's entrenched the Dahod scam is only the latest MGNREGA-related fraud across India, reflecting recurring challenges in the programme's implementation. In 2021-23 in West Bengal, allegations of irregularities to the tune of Rs 2,000 crore, including fake job cards and misreported projects, prompted the central government to withhold MGNREGA funds in 2022, citing corruption.A Rs 500 crore scam surfaced in Palamu and Latehar districts of Jharkhand in 2016-2018. The scam involved fraudulent muster rolls and payments to fictitious beneficiaries. Similarly, a Rs 100 crore scam in Odisha's Koraput and Rayagada districts in Odisha in 2012-2014 had ghost workers and inflated project costs, while in 2013, a Comptroller and Auditor General (CAG) report pointed out irregularities worth a whopping Rs 8,000 crore in Uttar Pradesh. This scam also involved fake job cards, payments for non-existent workers, and diversion of funds to non-MGNREGA of these cases have led to extended investigations and arrests of local government officials, but high-profile political convictions are missing, resulting in absence of deterrence of such irregularities and thus recurrence. An activist who has been extensively working for streamlining the MGNREGA processes across Madhya Pradesh, Maharashtra, Rajasthan and Gujarat says all these scams are but the tip of the to India Today Magazine
Time of India
19-05-2025
- Business
- Time of India
Gujarat mantri Bachu Khabad's socond son Kiran also held in Rs 71 crore MGNREGS scam
VADODARA: Gujarat minister of state for agriculture and panchayat Bachu Khabad's second son, Kiran Khabad (39), was arrested Monday in connection with a Rs 71 crore MGNREGS scam in Dahod. Tired of too many ads? go ad free now Three others, including Khabad's nephew Dilip Chauhan, were also arrested, taking the total number of arrests to 11. Kiran's elder brother Balwant Khabad (43) was arrested Saturday. Both are linked to firms that supplied materials for MGNREGS projects in Devgadhbaria and Dhanpur talukas without qualifying through the mandatory bidding process. Police said these firms received funds despite not securing any contracts. A probe by District Rural Development Agency flagged 32 firms. Balwant is tied to Shri Raj Construction Co, which received Rs 82 lakh, while Kiran's Shri Raj Traders was paid over Rs 30 crore - more than 40% of the total funds siphoned off in scam. DRDA's inquiry found that much of the sanctioned roadwork was never executed, with payments made based on falsified progress between 2021-22 and 2023-24.
Hindustan Times
19-05-2025
- Business
- Hindustan Times
Gujarat minister Bachubhai Khabad's second son arrested over alleged fraud
Gujarat minister Bachubhai Khabad's second son and four others were arrested on Monday for their alleged involvement in irregularities of ₹71 crore in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) scheme implementation in Dahod, a police officer said. Kiran Khabad was held two days after his elder brother, Balvant Khabad, was arrested on May 17 in the same case. The two were on the run for around three weeks. 'We arrested Kiran Khabad, son of minister Khabad, along with four others on Sunday night,' said Dahod police superintendent Rajdeepsinh Zala. He identified the four as Dahod's deputy district development officer, Rasik Rathwa, taluka panchayat officers Dilip Chauhan, Bhavesh Rathod, and Parth Baria, the proprietor of one of the 35 firms allegedly involved in the irregularities. Zala said Baria's firm received ₹5.20 crore of MGNREGS funds. The accused have been booked for cheating, breach of trust, forgery, and criminal conspiracy. So far, 12 people have been arrested in the case. The arrests followed a probe into payments to the contracted firms without completing work or supplying goods. The irregularities relate to MNREGA projects in Devgadh Baria and Dhanpur talukas of the tribal-dominated Dahod district. They came to light this year when the district rural development authority conducted an inquiry after representations about the irregularities. The probe found infrastructure projects only on paper. Funds meant for tribal employment were allegedly diverted to firms connected to the accused. Police described the irregularities as a well-orchestrated fraud involving fictitious projects and forged documents, even as the investigations were going on. Between January 2021 and December 2024, 35 contracted firms allegedly siphoned off ₹71 crore by producing fake work completion certificates and invoices. Balvant and Kiran Khabad own two of these firms, Shri Raj Construction and Shri Raj Traders, and allegedly received money even as they did not win bids for MNREGA works. Shri Raj Construction allegedly received approximately ₹82 lakh for the supply of goods between January 2021 and December 2024, according to the First Information Report filed in the case, a copy of which HT has seen. Kiran Khabad's firm was allegedly paid nearly ₹30 crore. Balwant and Kiran Khabad applied for anticipatory bail in a Dahod court but later withdrew their petitions as they were evading arrest. Bachubhai Khabad, who is the minister of state for panchayats and agriculture, has not commented on the arrests of his sons. On March 5, the Opposition Congress raised concerns about the MNREGA irregularities in Dahod in the state assembly. Congress leader Amit Chavda alleged corruption worth over ₹100 crore and demanded an investigation. On Saturday, Chavda slammed the ruling Bharatiya Janata Party (BJP) for mishandling the case. He said the MNREGA fraud was part of 'widespread corruption' and criticised the government for allowing firms linked to the Khabad family to receive unchecked payments for years. He demanded a Special Investigation Team probe, alleging that the current investigation was insufficient and that 'bigger names' could emerge with a deeper inquiry. The state government had said a Lokpal committee probe was going on, and action would follow after its completion.
Time of India
17-05-2025
- Business
- Time of India
Guj panchayat minister's son held in 71cr NREGA scam
Vadodara: on Saturday arrested , the son of the Gujarat minister of state for panchayats, , in connection with an alleged Rs 71 crore National Rural Employment Guarantee (NREGA) scam that was unearthed in the district last month. Tired of too many ads? go ad free now Balwant, Khabad's elder son, was linked to firms that received payments for the supply of materials even when they did not qualify through a bidding process. Police said Balwant was linked to Shri Raj Construction Co, while the younger son, Kiran, was connected to Shri Raj Traders. Both firms were among those that received money despite not winning the bid. Police confirmed their links to the firms during the investigation. Balwant and Kiran also applied for anticipatory bail in a Dahod court but later withdrew their petitions. Kiran is still at large. Balwant and Kiran were evading arrest, but the former was caught near Bathwada toll plaza in the district. Another accused in the case, taluka development officer Darshit Patel, presently posted in Kheda, was also arrested. He was earlier posted in Devgadh Baria. Both Balwant and Patel were presented in a Dahod court and were remanded to police custody for five days. This is the first time in recent memory that a sitting minister's son was arrested. The total number of arrests in the scam now stands at seven. The scam was unearthed last month, and an offence was registered by the director of the District Rural Development Authority (DRDA), who conducted an inquiry into the matter after representations about the scam. The state unit of the Congress also made representations about the scam in the assembly and submitted a memorandum. Tired of too many ads? go ad free now Dahod DRDA conducted an inquiry after directives from the Dahod district panchayat. The inquiry revealed that 32 firms that supplied materials for NREGA works in Devgadh Baria and Dhanpur villages were not authorised to do so as they had not emerged as the lowest bidders. These include 25 firms that supplied material in Devgadh Baria taluka, four in Dhanpur taluka, and three in both these talukas. The offence mentioned that these firms received an amount of Rs 71 crore towards material. They submitted bills despite not being selected in the bidding process, and these bills were cleared. It also came to light that some works were never taken up, and money was paid to the agencies. Leader of Opposition in Gujarat Assembly, Amit Chavda, meanwhile, demanded that a special investigation team should be formed for the investigations in the scam. He added that the scam could be much larger and more details can be unearthed if an honest investigation is conducted. Bachu Khabad is a BJP heavyweight and OBC leader who has been an MLA since 2012.
