UP Scholarship Distribution Scandal: Major Financial Irregularities Uncovered
LUCKNOW: The Uttar Pradesh government has ordered a comprehensive inquiry and initiated recovery proceedings following the discovery of serious procedural violations and substantial financial irregularities in the distribution of scholarships under the pre-matric and post-matric schemes for the 2025-26 financial year. The social welfare department's scholarship disbursement process has come under intense scrutiny after multiple breaches of established protocols were identified.
Massive Scholarship Payments Released Without Proper Verification
Scholarship and fee reimbursement amounts totaling crores of rupees were released on January 25, 2026, covering all student categories across the state. However, a subsequent review revealed alarming discrepancies in the disbursement process, particularly concerning general category students where mandatory group-wise capping norms were completely disregarded. This oversight resulted in excess scholarship payments that significantly exceeded prescribed financial limits.
Procedural Breaches and Lack of Oversight
An initial inquiry conducted by the social welfare department uncovered that scholarship demand data for certain categories was downloaded from the National Informatics Centre (NIC) portal using the official login credentials of a deputy director-level officer responsible for the scheme. Despite the sensitive nature of this financial data, it was allegedly not subjected to any verification, scrutiny, or formal approval at any stage of the process.
"Notwithstanding the absence of checks, a bill based on this unverified data was allegedly prepared on January 21, 2026, in apparent violation of established financial rules and scholarship disbursement procedures," revealed an official familiar with the development. "Concerns were raised when a file was subsequently forwarded through the e-office system containing only district-wise student numbers and the total amount involved. The file allegedly did not include any authorized demand, bill copy, or supporting documents, raising serious questions over the legitimacy of the entire process."
Complete Bypass of Established Protocols
Further investigation revealed that no formal scholarship demand was submitted through the prescribed process for the current financial year. Despite this critical omission, bills were generated without proper validation, pointing to severe lapses in financial control mechanisms within the department.
Officials familiar with the standard operating procedure explained that scholarship demand data is initially generated by NIC and then verified at the district level by a designated district committee. After thorough verification, the consolidated demand data is forwarded to the department through the login of a planning officer or deputy director-level officer. At the directorate level, the data undergoes joint review by technical officers and senior officials to ensure complete compliance with rules and guidelines.
During this crucial stage, incorrect or incomplete entries are typically blocked and sent back to districts for re-verification. Only filtered and verified data is supposed to be used for bill generation. For instance, if out of ten entries two are found incorrect, those two are blocked and the bill is generated only for the remaining eight eligible students. After bill generation, a token is raised through the cash section and forwarded to the Public Finance Management System (PFMS) for payment. In this particular case, officials completely circumvented this entire due process.
Excess Payments and Recovery Process
The excess payments to general category students occurred because prescribed caps were not applied during disbursement. Under existing norms, scholarship limits are strictly capped at:
- Rs 50,000 for Group-1 courses
- Rs 30,000 for Group-2 courses
- Rs 20,000 for Group-3 courses
- Rs 10,000 for Group-4 courses
Any amount paid beyond these established limits must be recovered using the prescribed government receipt system. Director Sanjeev Singh of the social welfare department confirmed to media sources that digital records indicate data entry was carried out using the login ID of a deputy director-level officer associated with the scheme, and payments exceeded permitted caps in several cases.
"Once verification is complete, recovery will be initiated as per rules," the director stated, adding that details of the issue were still being ascertained through a comprehensive verification exercise currently underway.
Government Action and Accountability
Taking serious cognizance of the matter, Social Welfare Department Secretary Pramod Kumar Upadhyay issued written instructions on Friday to Director Sanjeev Singh to:
- Fix responsibility for the procedural lapses
- Submit a detailed report to the government
- Ensure recovery of the excess amount disbursed
"The inquiry is expected to determine accountability for lapses and recommend corrective measures to prevent recurrence of such irregularities," said an official source familiar with the investigation. The state government's swift response indicates the seriousness with which it views these financial irregularities in scholarship distribution, which directly impacts educational access for thousands of students across Uttar Pradesh.
