NSDC in Flux: CEO Ouster, Police Complaint, and CAG Audit Highlight PMKVY Woes
The turbulent trajectory of the National Skill Development Corporation (NSDC), the agency overseeing India's flagship Pradhan Mantri Kaushal Vikas Yojana (PMKVY) under the Ministry of Skill Development, starkly underscores the profound challenges plaguing the nation's premier skilling mission. Recent developments have thrust the organization into a maelstrom of controversy, marked by leadership instability, legal entanglements, and severe audit findings.
Leadership Upheaval and Transition
In a significant shake-up, NSDC appointed Arun Kumar Pillai as its new Chief Executive Officer last month, following the abrupt removal of his predecessor, Ved Mani Tewari, in May 2025. Tewari's departure was communicated through an unusual public notice, which stated he was no longer associated with NSDC and announced that a committee of senior officials would temporarily oversee operations until a replacement was found. This leadership vacuum precipitated a period of uncertainty, exacerbating existing operational issues within the skilling ecosystem.
Police Complaint and Allegations of Misappropriation
Amid this transition, the Ministry of Skill Development escalated concerns by filing a formal complaint with the Delhi Police on August 1, 2025, alleging "misappropriation at NSDC." The complaint accused certain senior officials of making illegal appointments and extensions without board approval, raising fears that they might abscond with government funds or NSDC property. Notably, some of these implicated officials were part of the high-powered committee tasked with steering the organization post-CEO removal, highlighting potential conflicts of interest and governance lapses.
CAG Audit Exposes Widespread Irregularities
Adding to the turmoil, the Comptroller and Auditor General (CAG) conducted a comprehensive audit of three PMKVY phases from 2015 to 2022, covering an outlay of Rs 14,450 crore and targeting 1.32 crore candidates for training and certification. The 94-page report delivered a scathing indictment, flagging multiple irregularities:
- Fake bank account numbers linked to beneficiaries.
- Duplication of identification details across candidates.
- Non-payment to training partners for 34 lakh candidates.
The audit further criticized ineffective coordination between central and state departments, described NSDC's monitoring mechanisms as "unreliable," and cited poor oversight by the Ministry. Deficiencies included non-functional biometric attendance devices at skill centers and a sample survey revealing that 36% of emails between NSDC and beneficiaries were undelivered.
Blacklisting and State-Level Actions
In October 2025, the Centre informed all State Governments that 178 skilling centers accredited under PMKVY had been blacklisted, advising caution in considering proposals from these entities under any government skilling scheme. These centers spanned 18 states, with the highest concentrations in Uttar Pradesh, followed by Delhi, Madhya Pradesh, and Rajasthan. Concurrently, 41 First Information Reports (FIRs) have been filed by police in various states, and an internal audit into financial irregularities within NSDC has been initiated following the former CEO's exit.
NSDC has not responded to requests for comment on these developments, leaving many questions unanswered as the organization grapples with restoring credibility and efficiency in India's critical skilling initiatives.
