Punjab Government Facing Scrutiny Over Scholarship Scam
Court Inquiry into Multi-Crore Allegations
The Punjab and Haryana High Court has raised questions regarding the absence of a First Information Report (FIR) in connection with an alleged multi-crore scam involving a post-matric scholarship scheme for Scheduled Caste students. This inquiry, dating back several years, has drawn attention to the incumbent Aam Aadmi Party (AAP) government, which took over after the Congress administration. During a recent hearing, the court sought clarity on the delay in registering an FIR despite ongoing investigations.
The controversy first emerged in 2019, during the leadership of former Chief Minister Captain Amarinder Singh and then Social Justice Minister Sadhu Singh Dharamsot. Since then, multiple inquiries have been conducted under both political parties, resulting in the dismissal of five officials. However, no FIR has been filed to date. The AAP government passed the case on to the Punjab Vigilance Bureau in January 2023 for further examination.
High Court’s Directives
The High Court addressed a Public Interest Litigation (PIL) on Monday, emphasizing the need for the state to determine if the complaint constituted a cognizable offense. The division bench, led by Chief Justice Sheel Nagu and Justice Sanjiv Berry, expressed concerns over the prolonged preliminary inquiry. They mandated a prompt response on whether the complaint qualifies for FIR registration under the time frames established by the Supreme Court in the case of Lalita Kumari vs Government of Uttar Pradesh.
The court’s order has put the AAP government on high alert. An official mentioned that the files are currently being re-evaluated, claiming that the vigilance bureau has been diligently investigating the issue.
Concerns Over Prolonged Inquiry
The court criticized the lengthy nature of the preliminary inquiry, stating that its primary purpose is to verify whether a cognizable offense exists. The bench remarked, “We see no reason why the preliminary inquiry should take such a long period of time.” It also highlighted that the matter has been under scrutiny since at least 2019, yet no criminal proceedings have commenced.
Petitioners in the case allege significant irregularities in the distribution of post-matric scholarships, citing that funds were improperly funneled through fake or non-existent educational institutions, including some located outside Punjab. Reports indicate that financial irregularities may exceed Rs 258 crore, with earlier dues and suspected diversions amounting to approximately Rs 505 crore. Petitioners have called for a CBI investigation into the allegations.
Details of the Alleged Scam
The investigation focuses on alleged discrepancies in the post-matric scholarship program for Scheduled Caste students, with estimates suggesting that the scam could involve Rs 60 to 65 crore, alongside identified inconsistencies in a larger pool of funds. Investigations have revealed a pattern of manipulation by private educational institutions, where fraudulent claims were made based on inflated student admissions and exaggerated fee structures to obtain higher reimbursements from the government.
The irregularities primarily occurred during Dharamsot’s tenure as head of the department. Despite his denial of any wrongdoing, inquiries highlighted critical administrative failures, including inadequate verification of claims and monitoring of fund distributions.
Former principal secretary of the department and whistleblower Kripa Shankar Saroj initiated a detailed investigation and submitted his findings to the then-chief minister. The AAP was in opposition at that time, demanding a thorough inquiry into the alleged irregularities.
Findings from Inquiry Reports
An inquiry report by former district and sessions judge B.R. Bansal, submitted in July 2022, concluded that directives from the then chief minister and principal secretary were disregarded, allowing specific private institutions to benefit unfairly. The investigation implicated several officials who were subsequently suspended and dismissed after charges were brought against them in 2020.
The report revealed that instead of penalizing educational institutions engaged in fraudulent activities, the involved officials extended significant financial advantages to them. It highlighted a specific instance where an unjust payment of Rs 16.91 crore was authorized for nine institutions without necessary approvals. Missing records concerning these transactions prompted further scrutiny.
AAP Holds Congress Accountable
In the wake of the officials’ dismissal, Finance Minister Harpal Cheema and Social Justice Minister Dr. Baljit Kaur suggested a deeper investigation by the Vigilance Bureau. Kaur specifically noted that the irregularities peaked during the Congress-led government in 2019, claiming that over Rs 16 crore had been improperly allotted to various colleges.
Cheema argued that despite previous calls for action against malpractice in the distribution of scholarships, the Congress government failed to hold anyone accountable once in power, suggesting a collusion between the two parties. He stated that the number of students applying for the scheme substantially declined due to inadequate fund disbursal to eligible candidates, reflecting the systemic issues within the program.
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Contents
Court Inquiry into Multi-Crore AllegationsThe Punjab and Haryana High Court has raised questions regarding the absence of a First Information Report (FIR) in connection with an alleged multi-crore scam involving a post-matric scholarship scheme for Scheduled Caste students. This inquiry, dating back several years, has drawn attention to the incumbent Aam Aadmi Party (AAP) government, which took over after the Congress administration. During a recent hearing, the court sought clarity on the delay in registering an FIR despite ongoing investigations.The controversy first emerged in 2019, during the leadership of former Chief Minister Captain Amarinder Singh and then Social Justice Minister Sadhu Singh Dharamsot. Since then, multiple inquiries have been conducted under both political parties, resulting in the dismissal of five officials. However, no FIR has been filed to date. The AAP government passed the case on to the Punjab Vigilance Bureau in January 2023 for further examination.High Court’s DirectivesThe High Court addressed a Public Interest Litigation (PIL) on Monday, emphasizing the need for the state to determine if the complaint constituted a cognizable offense. The division bench, led by Chief Justice Sheel Nagu and Justice Sanjiv Berry, expressed concerns over the prolonged preliminary inquiry. They mandated a prompt response on whether the complaint qualifies for FIR registration under the time frames established by the Supreme Court in the case of Lalita Kumari vs Government of Uttar Pradesh.The court’s order has put the AAP government on high alert. An official mentioned that the files are currently being re-evaluated, claiming that the vigilance bureau has been diligently investigating the issue.Concerns Over Prolonged InquiryThe court criticized the lengthy nature of the preliminary inquiry, stating that its primary purpose is to verify whether a cognizable offense exists. The bench remarked, “We see no reason why the preliminary inquiry should take such a long period of time.” It also highlighted that the matter has been under scrutiny since at least 2019, yet no criminal proceedings have commenced.Petitioners in the case allege significant irregularities in the distribution of post-matric scholarships, citing that funds were improperly funneled through fake or non-existent educational institutions, including some located outside Punjab. Reports indicate that financial irregularities may exceed Rs 258 crore, with earlier dues and suspected diversions amounting to approximately Rs 505 crore. Petitioners have called for a CBI investigation into the allegations.Details of the Alleged ScamThe investigation focuses on alleged discrepancies in the post-matric scholarship program for Scheduled Caste students, with estimates suggesting that the scam could involve Rs 60 to 65 crore, alongside identified inconsistencies in a larger pool of funds. Investigations have revealed a pattern of manipulation by private educational institutions, where fraudulent claims were made based on inflated student admissions and exaggerated fee structures to obtain higher reimbursements from the government.The irregularities primarily occurred during Dharamsot’s tenure as head of the department. Despite his denial of any wrongdoing, inquiries highlighted critical administrative failures, including inadequate verification of claims and monitoring of fund distributions.Former principal secretary of the department and whistleblower Kripa Shankar Saroj initiated a detailed investigation and submitted his findings to the then-chief minister. The AAP was in opposition at that time, demanding a thorough inquiry into the alleged irregularities.Findings from Inquiry ReportsAn inquiry report by former district and sessions judge B.R. Bansal, submitted in July 2022, concluded that directives from the then chief minister and principal secretary were disregarded, allowing specific private institutions to benefit unfairly. The investigation implicated several officials who were subsequently suspended and dismissed after charges were brought against them in 2020.The report revealed that instead of penalizing educational institutions engaged in fraudulent activities, the involved officials extended significant financial advantages to them. It highlighted a specific instance where an unjust payment of Rs 16.91 crore was authorized for nine institutions without necessary approvals. Missing records concerning these transactions prompted further scrutiny.AAP Holds Congress AccountableIn the wake of the officials’ dismissal, Finance Minister Harpal Cheema and Social Justice Minister Dr. Baljit Kaur suggested a deeper investigation by the Vigilance Bureau. Kaur specifically noted that the irregularities peaked during the Congress-led government in 2019, claiming that over Rs 16 crore had been improperly allotted to various colleges.Cheema argued that despite previous calls for action against malpractice in the distribution of scholarships, the Congress government failed to hold anyone accountable once in power, suggesting a collusion between the two parties. He stated that the number of students applying for the scheme substantially declined due to inadequate fund disbursal to eligible candidates, reflecting the systemic issues within the program.

