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Welfare pension fraud exposes luxury car owners in Kerala

The revelation of welfare pension fraud in Kerala has sparked widespread outrage and led to significant investigations. Recent findings have exposed that individuals owning luxury cars and residing in upscale homes have been receiving social security pensions meant for the underprivileged.

News Arena Network - Kochi - UPDATED: November 29, 2024, 05:06 PM - 2 min read

Kerala cracks down on ineligible pensioners after audit.


The revelation of welfare pension fraud in Kerala has sparked widespread outrage and led to significant investigations. Recent findings have exposed that individuals owning luxury cars and residing in upscale homes have been receiving social security pensions meant for the underprivileged.

 

This has prompted the state’s Finance Minister, K N Balagopal, to order a comprehensive audit across Kerala, urging the removal of ineligible beneficiaries from the welfare pension lists.

 

The issue first came to light in Kottakkal Municipality, located in Malappuram district, where an audit conducted by the Finance Department uncovered the fraudulent inclusion of affluent individuals in the social security pension scheme.

 

These pensions, meant for the economically disadvantaged, were being claimed by people who owned BMW cars or lived in houses equipped with modern luxuries such as air conditioners. In some cases, spouses of government pensioners were also found to be receiving welfare pensions.

 

The scale of this fraud has shocked the state. Further investigations revealed that many of the beneficiaries in Kottakkal, including those who resided in houses over 2,000 square feet in size, were clearly ineligible according to the strict criteria set for the welfare scheme.

 

In one of the audited wards, out of 42 beneficiaries examined, 38 were found to be ineligible, and one had already passed away.

 

This discovery has prompted the Kerala government to take swift action. Finance Minister Balagopal has directed a vigilance inquiry into the role of officials who failed to ensure proper eligibility checks.

 

These include revenue officials who issued income certificates and those who approved the pension claims. Additionally, the department has asked local bodies to conduct regular reviews of the beneficiaries to prevent further fraud.

 

The audit not only exposed individuals in affluent situations receiving welfare pensions, but it also uncovered widespread fraudulent claims. Reports have surfaced that nearly 1,500 government employees, including college professors and gazetted officers, were illegally benefiting from the scheme.

 

This number highlights the depth of the fraud that was occurring in the state, with many officials allegedly involved in approving these wrongful claims.

 

The state has now resolved to expand its scrutiny of the welfare pension lists statewide. Local self-governing bodies will be asked to verify the eligibility of every beneficiary receiving payments through bank accounts.

 

The objective is to ensure that the welfare pensions reach only those who are genuinely in need.

 

To address this issue effectively, Kerala’s government has called for a comprehensive review of the social security pension system. The criteria for eligibility include strict rules: applicants must have a family income below Rs 1 lakh, cannot own luxury vehicles, and should not reside in large, modern homes.

 

Furthermore, individuals who receive multiple pensions, are taxpaying citizens, or live in care homes are ineligible under these schemes.

 

As part of the ongoing crackdown, the government has enlisted the Local Self-Government Department to ensure that Kottakkal Municipality conducts thorough checks on its beneficiaries. A similar review is being considered for other areas in the state to prevent further exploitation of the system.

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