₹56 Crore Embezzled by Fake SHGs Between 2019-24: Lanka Dinakar

Quick Summary

• Loans to Women SHGs: Chairman of 20-Point Program Implementation Committee Lanka Dinakar reported that loans totaling ₹35,000 crore to ₹40,000 crore are being disbursed annually to women Self-Help Groups (SHGs).
• Irregularities in Loans (2019-24): Fake loans amounting to ₹37.51 crore were issued through fraudulent SHGs during 2019-2024. Around ₹10.65 crore has been recovered; ₹26.86 crore remains outstanding.

– District-wise Highlights:
– Anakapalli: Misuse of approximately ₹2.86 crore across six villages involving 53 fake groups.
– Kakinada: Recorded the largest misappropriation at ₹18.78 crore, with around ₹7 crore recovered.
– Urban irregularities amounted to diversion of about ₹18.55 crore by 98 fake groups, notably in Gudivada (₹6.30 crore) and Ongole (₹5.98 crore).

• Preventive Measures: Biometric authentication linked with Aadhaar implemented for unique IDs for SHGs and members to combat duplicate membership and fraud cases.

• Tracking app Introduced: The ‘mana dabbulu-Mana Lekka’ app launched in April enables SHG members to track loan and repayment details on mobile devices.

Indian Opinion Analysis

The scale of financial aid disbursed annually through SHGs underscores their central role in rural poverty alleviation efforts and women’s economic empowerment programs in India. However, the revealed irregularities during the previous government signal systemic gaps that allowed misuse of public funds intended for vulnerable communities.The steps taken-such as linking biometric authentication with Aadhaar and introducing a real-time loan tracking app-are critical reforms aimed at enhancing transparency within these microfinance ecosystems while reducing fraudulent activities over time.

Apart from direct financial recovery efforts, addressing mismanagement will require strengthening oversight mechanisms across SERP and MEPMA programs at local levels along with holding perpetrators accountable under the law-a necessary step towards restoring confidence in these social welfare initiatives designed primarily for grassroots beneficiaries.

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