Jharkhand Chief Minister Hemant Soren ordered an inquiry in 2020 into alleged irregularities in minority-student scholarships. The often-cited Rs 61 crore was the amount disbursed in the state under the pre-matric scheme in 2019–20—not a proven total of money stolen. Contemporary reports described allegations and investigative steps; they do not establish a final court finding or the case’s ultimate outcome.
What prompted the probe?
On November 2, 2020, The Indian Express reported that Soren had ordered a probe after its investigation identified alleged fraud involving middlemen, school staff, state employees and scholarship funds intended for minority students. Speaking in Dumka, Soren said, “We have just got to know about the scam and very soon, there will be action.” The report also said the state Chief Secretary had taken cognizance of an earlier warning about attempts to subvert the National Scholarship Portal.
A later report described a more formal step. On December 14, 2020, Soren approved the state Anti-Corruption Bureau (ACB) to begin a preliminary enquiry into irregularities in pre-matric, post-matric and merit-cum-means scholarship schemes. The Chief Minister’s Secretariat said the ACB would submit an initial report. Soren also directed district Deputy Commissioners to report after physically verifying applicants and schools for academic year 2020–21.
What did the Rs 61 crore figure refer to?
Records cited in The Indian Express’s November 2020 report showed Rs 61 crore disbursed in Jharkhand through Direct Benefit Transfer under the pre-matric scholarship scheme in 2019–20. Its December report identified the Ministry of Minority Affairs as the central ministry administering the scheme.
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The figure describes the scheme’s reported disbursement, not a confirmed loss. The reports do not show that all Rs 61 crore was diverted, stolen or unrecoverable. “Siphoning of Rs 61 crore” appeared in contemporary headline language, but should not be read as a finding that the entire disbursed amount was fraudulently taken.
How was the scholarship supposed to work?
The December 2020 report said the pre-matric scheme had been launched in 2008 for minority-community students whose families had annual income below Rs 1 lakh. It reported a minimum 50 percent marks requirement and the following annual awards:
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| Student category | Annual award reported in 2020 |
|---|---|
| Classes 1–5 | Rs 1,000 |
| Classes 6–10, day scholars | Rs 5,700 |
| Classes 6–10, hostel students | Rs 10,700 |
These are historical eligibility and award details as reported in 2020, not guidance on current scholarship rules or amounts.
What irregularities did reports describe?
Scroll’s November 2, 2020 account summarized examples from The Indian Express investigation. The allegations concerned several stages of the process: registering beneficiaries, checking school and applicant information, and ensuring funds reached students.
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- One student reportedly said he had provided fingerprints and Aadhaar details without knowing that an account had been created in his name.
- A scholarship record reportedly listed a hostel-level award even though the school in question was said to have no hostel.
- Other reported cases involved people who were not students and records in which religion details had been altered.
- The reporting described money being withdrawn or only partly reaching students, alongside alleged weaknesses or manipulation in verification.
These are examples reported as allegations, not findings of guilt against particular people. Scroll said its investigation covered Ranchi, Dhanbad, Latehar, Ramgarh, Lohardaga and Sahibganj. It also reported, citing the Chief Secretary’s statement to The Indian Express, that verification for that year’s scholarship had been stopped pending inquiry.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What was established—and what remains unresolved?
The reported sequence is clear: Soren announced a probe in November 2020, then approved an ACB preliminary enquiry and ordered physical verification in December. The contemporary coverage documented alleged irregularities and specific examples, but an inquiry order is not itself a determination that fraud occurred or that a particular person was responsible.
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The cited reports do not establish the ACB’s final findings, whether anyone was later prosecuted or convicted in Jharkhand, how much money was recovered, or whether the matter was closed. Without direct, newer evidence, those outcomes should not be assumed.
What the allegations say about Aadhaar-enabled payments
Economist Jean Drèze, quoted by Scroll, called the case “yet another illustration of the vulnerabilities of the Aadhaar-enabled payment system.” That was his assessment of the reported case, not an official finding and not proof that all Direct Benefit Transfer payments are vulnerable or improper.
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