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Odisha Govt Vows Action After CAG Report Unearths Multi-Crore Scholarship Scam

by OB Bureau
January 13, 2026
in Odisha
Reading Time: 1 min read
Odisha Govt Vows Action After CAG Report Unearths Multi-Crore Scholarship Scam
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Bhubaneswar: Largescale irregularities in disbursement of scholarships have reportedly been exposed in Odisha, amid claims that crores of rupees meant for poor and deserving students were siphoned off using fake documents and ghost beneficiaries.

The Comptroller and Auditor General (CAG) report has uncovered serious irregularities in the distribution of scholarships between 2017–18 and 2019–20, raising questions about transparency and accountability in the system. The multi-crore scam was allegedly carried out by engineering college authorities in collusion with government officials.

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Reacting to the reported findings, Odisha’s School and Mass Education Minister Nityananda Gond has assured strict action will be taken against scamsters after inquiry.

According to the CAG’s findings, scholarships were disbursed to ghost students whose names did not exist on the official Prerana Portal, the platform designed to ensure fair distribution of funds.

The audit covering the period from 2017–18 to 2019–20 uncovered shocking irregularities, including the use of fake caste certificates and forged income documents to claim benefits. The report states that Rs 1.38 crore was paid to students using falsified caste and income certificates, while another Rs 7.40 crore was transferred to illegal bank accounts without proper verification.

It is alleged that several government officials and engineering college authorities colluded in misusing student identities to loot public money, undermining the very purpose of the scholarship scheme.

While speaking to media on this issue on Tuesday, Higher Education Minister Nityananda Gond said, “The government takes this matter very seriously. Strict action will be taken against those found guilty, whether officials or institutions. We are committed to ensuring that scholarships reach only genuine students, and reforms will be introduced to prevent such misuse in the future.” His assurance comes amid growing demands for accountability and systemic reforms.

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