More than 10,000 officials suspected of welfare pension fraud; Rs 50 crore loss to state treasury

THIRUVANANTHAPURAM: An extensive investigation into welfare pension disbursement in Kerala has unveiled widespread fraud involving over 10,000 government employees and pensioners. The scam has caused an estimated ₹50 crore loss to the state treasury.

The Information Kerala Mission recently identified 1,458 employees who embezzled ₹8.40 crore over three years. However, the 2022 Comptroller and Auditor General (CAG) social audit revealed a more alarming figure—9,201 employees and pensioners fraudulently received pensions, resulting in a loss of ₹39.27 crore. Including additional cases flagged in district-level reports, the number of fraudsters climbs to 10,659.

The scam primarily involves widow pensions, disability pensions, mental disability pensions, and pensions for unmarried women above 50. Many recipients began claiming pensions before joining government service but continued receiving them after employment.

The lapses stem from errors in pension application submission, verification, and approval processes within local bodies. Earlier inspections revealed instances of dual pensions for the same individual and pensions being granted without required certificates.

Following the CAG report, Kerala’s Finance Minister directed individuals receiving pensions without entitlement to voluntarily withdraw. As withdrawals are counted, the number of fraudulent beneficiaries is expected to increase.

The local government department, tasked with ensuring eligibility for pensions, has also come under scrutiny. Local bodies have been instructed to audit pension accounts and were warned of accountability if fraud is discovered. The Finance Department has released a list of fraudulent beneficiaries and ordered a full-scale investigation.

Strict action has been proposed against those involved, including recovery of the embezzled amounts with interest. Department heads will initiate disciplinary measures under service rules. Additionally, legal consultations will be sought to pursue criminal charges where necessary.

A rule will also be enforced prohibiting employees from engaging in other remunerative jobs or accepting gratuities during service. The repeated mustering of pension beneficiaries invalidates claims that the fraud occurred unknowingly.

The welfare pension scheme has been a cornerstone of the state’s social security system, with the first Pinarayi government spending ₹29,622.67 crore and the current administration allocating ₹32,100 crore. Despite financial strain, four months of pensions are in arrears due to the diversion of funds by fraudsters.