A parliamentary standing committee has urged the government to revive key minority scholarship schemes selectively in states or Union Territories where “no or very few irregularities” have been reported. The call comes after years of stalled approvals and halted disbursals left significant funding unused, according to the committee’s report presented in the Lok Sabha.
Panel Highlights Stalled Approvals and Unspent Funds
The parliamentary standing committee on social justice and empowerment observed that major scholarship schemes for minority students — including the pre‑matric, post‑matric, and merit‑cum‑means scholarships — have not been approved for years. Disbursals were also stopped more than four years ago due to alleged irregularities in implementation. As a result of the freeze on new approvals and payments, the report notes that over Rs 3,400 crore of allocated funds remained unutilised in financial years from 2023‑25 through 2025‑26. In 2024‑25, less than 20 per cent of the budget was reportedly utilised for these scholarships. The committee expressed concern that withholding approvals over pending recoveries of misused funds could harm students who are not at fault. It recommended that implementation restart in states where there is minimal evidence of irregularity.
Fake Institutes and Irregularities Identified in Several States
Government data tabled with the report showed that 609 institutes across the country were identified as fully or partially fake or irregular, leading to the filing of First Information Reports (FIRs). The highest numbers of such institutes were reported in Uttar Pradesh (178), Rajasthan (126), and Madhya Pradesh (69).The committee highlighted concerns that systemic issues — including potential collusion among middlemen, bank officials, school administrators, and government employees — might have facilitated the siphoning off of scholarship funds.
Impact on Minority Students and Future Allocations
The stalled implementation has affected financial support for minority students from pre‑school age through higher education, worsening access to education for economically weaker students. Both pre‑matric and post‑matric components, designed to support students from Class I through higher studies, were limited due to budget cuts and fraud concerns. In the Union Budget 2026‑27, the allocation for the merit‑cum‑means scholarship was significantly reduced, and the post‑matric scholarship saw a cut of about 33 per cent compared to previous years.