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The enquiry discovered that many of these institutions were non-existent or had ceased operations while still claiming funds from the National Scholarship Portal.
CBI identified instances where beneficiaries and institution nodal officers colluded to siphon funds.(Representative Image)
The CBI has launched an investigation into the alleged embezzlement of over Rs 11.4 crore from scholarship funds intended for students with disabilities by “non-existent” institutes and students, officials reported on Monday. The Central Bureau of Investigation (CBI) has filed an FIR against unidentified public servants and nodal officers in Delhi, Uttar Pradesh, Tamil Nadu, Karnataka, and Jammu and Kashmir, reported PTI. These individuals are accused of diverting funds from the Umbrella Scholarship Scheme, which was initiated in 2018 by merging six scholarship schemes, including the Post-matric Scholarship for Students with Disabilities.
This scheme provided financial assistance to students from classes 11 and 12, as well as those enrolled in post-matriculation diploma and certificate courses. It also supported bachelor’s, master’s degrees, and diplomas from institutions recognised by UGC/AICTE.
The CBI mentioned that the scheme’s objectives and allowances, such as maintenance allowance, disability allowance, reimbursement of compulsory non-refundable fees, and book allowance, are outlined in the scheme book for students with disabilities.
The central agency began a preliminary enquiry last year after receiving a complaint from the secretary of the Union Ministry of Social Justice and Empowerment, Department of Empowerment of Persons with Disabilities. The complaint alleged that Rs 11.41 crore in scholarships had been disbursed to 926 students associated with 28 institutions that were either fake or found guilty of serious malpractices during a ministry inspection.
The enquiry discovered that many of these institutions were non-existent or had ceased operations while still claiming funds from the National Scholarship Portal. According to the FIR, Satyam College of Education in Jammu and Kashmir had been closed since 2017, yet claims were made in the names of its students using fake user IDs on the National Scholarship Portal.
The conspiracy also involved the use of functional schools without their knowledge, with 11 institutions in states like Rajasthan, Karnataka, and Odisha reporting that they were unaware of the scheme and that the alleged beneficiaries had never been enrolled in their schools.
The agency identified instances where beneficiaries and institution nodal officers colluded to siphon funds. For example, in a Lucknow-based college mentioned in the FIR, the Institute Nodal Officer (INO) forwarded 32 scholarship applications during the 2022-23 academic year. Out of these, 24 students received the scholarship, and nine withdrew the funds.
The preliminary enquiry revealed that in 2022-23, scholarships meant for disabled students were fraudulently obtained using fake beneficiaries as part of a criminal conspiracy involving representatives of institutions, institution nodal officers, public servants, including State Nodal Officers (SNOs), and others, causing a wrongful loss to the government exchequer.
March 17, 2026, 07:51 IST
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