Vigilance uncovers large-scale corruption in DDU-GKY skill training scheme

THIRUVANANTHAPURAM: The Vigilance and Anti-Corruption Bureau (VACB) has uncovered large-scale corruption and irregularities in the implementation of the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), a central government scheme for skill training. The irregularities were found during raids conducted in 62 offices across the state under an operation named ‘Skill Guard’. According to officials, the fraud was carried out jointly by implementing agencies and government officials.

Agencies without the required three years of work experience were appointed to carry out the project. Full payments were made to agencies without ensuring that trained candidates were actually placed in jobs. Salaries were also paid to employees who were not connected to the scheme. In several cases, post-placement allowances meant for trainees were not given. Instead, fake documents were created and money was misappropriated. Agencies also failed to provide the mandatory bank guarantees required for implementing the project.

Payments were released to agencies without updating the placement details of trainees on the official online portal. Some agencies stopped training after receiving two instalments of funds, but the money was not recovered from them.

In one case, an official at the state implementation office allegedly accepted Rs 25,000 from a director of an agency. It was also found that a Kollam-based institution without central registration signed an agreement in the name of a Kottayam agency to implement the scheme.

In Palakkad, fake salary slips from various companies were found in the names of candidates who had not secured placements. In some cases, offer letters of people working in other institutions were misused to claim post-placement allowances.

Under the scheme, which aims to provide skill training to youth, 60 percent of the cost is borne by the Central Government and 40 percent by the State Government.

Fake jobs and salaries

• In some cases, money was deposited into trainees’ bank accounts as “salary” to create proof of employment and later taken back.
• Fake bank accounts were opened in the names of candidates. Money was credited as salary and withdrawn the next day through ATMs.
• In Malappuram, fake bank statements and fake placement certificates were seized from two agencies. One agency allegedly collected Rs 10 lakh per month as rent for its own building.

A detailed investigation will be conducted into the fraud. We will collect bank records and examine all financial transactions.
- Manoj Abraham
Vigilance Director