Minority Scholarship Scheme Scam

GS Paper 2

 Syllabus: Government Policies and Interventions

 

Source: IE

 Context: The Central Bureau of Investigation (CBI) has registered a case against unknown nodal officers and bank officials for alleged fraud in the implementation of minority scholarship schemes.

 

More about the News:

The scam involved 830 “fake” institutions receiving benefits, causing a loss of more than Rs 144 crore to the Ministry of Minority Affairs between 2017-18 and 2021-22.

 

The central government provided three different minority scholarship schemes to approximately 65 lakh students every year between 2017-22. The schemes were:

  • Pre-Matric Scholarships
  • Post-Matric Scholarships
  • Merit-cum-Means for the students of Six Minority communities

 

Scholarship Scheme Description
Pre-Matric Scholarship Scheme Centrally funded scholarship scheme; Open annually; Provides financial aid for classes 1 to 10; Encourages minority students’ education
Eligibility for Pre-Matric Scholarship: Student in Class 1 to 10; From minority community; Parent/guardian income ≤ ₹1 Lakh/year
Post-Matric Scholarship Scheme Centrally Sponsored Scheme; Implemented through State Govt. and UT administration; Covers classes 11, 12, undergraduate, and postgraduate courses; Supports higher education and career growth
National Means Cum-Merit Scholarship Scheme (NMMSS) Centrally Sponsored Scheme (CSS); Launched in 2008; Assists meritorious minority students with limited finances; Promotes academic excellence and equal opportunities

 

Impact of the Scam:

Implications Description
Financial Impact Loss of over ₹144 crore to the Ministry of Minority Affairs.
Diversion of funds intended for genuine beneficiaries.
Scholarship Scheme Undermined Pre-Matric Scholarship Scheme targeted by the scam.
Funds meant for deserving minority students were misused.
Collusion and Exploitation Collusion of institutions, applicants, nodal officers, and more.
Diversion of scholarship funds through fraudulent means.
Impact on Beneficiaries Genuine students from minority communities are potentially denied rightful aid.
Misuse of scholarships affects educational opportunities.
Ethical Impact Betrayal of Trust; Inequity and Injustice; Colluding parties compromise ethical standards for personal gains; Erosion of moral values in education and administration; Exposure of such scams erodes public confidence in government initiatives

 

Minority Communities in India: 

  • Recognized under the National Commission for Minorities Act, 1992: Muslims, Sikhs, Christians, Buddhists, Parsis; and Jains added in 2014.
  • 19.3% of the total population as per the 2011 Census.
  • Major groups: Muslims (about 14%), Christians (about 2%), Sikhs (1.7%), Buddhists (0.7%), Jains (0.4%), Parsis (0.006%).
  • The term “minority” is not defined in the Indian Constitution. However, the Constitution recognizes only religious and linguistic minorities.
  • Constitutional Provisions: Article 29 preserves distinct language, script, and culture; Article 30 grants education institution rights.
  • Article 350-B: Special Officer for Linguistic Minorities established by the Seventh Constitutional Amendment Act of 1956.
  • Parliamentary Provision: The National Commission for Minorities Act, 1992 defines minorities as notified by the Central government.

 

Other schemes for minorities:

  • Education Loan Scheme by NMDFC
  • Employment and Economic Empowerment Schemes
  • Jiyo Parsi
  • Qaumi Waqf Board Taraqqiati Scheme (QWBTS)
  • Shahari Waqf Sampatti Vikas Yojana (SWSVY)
  • Pradhan Mantri Jan Vikas Karyakram (PMJVK)

  

Insta Links

 Issues related to minorities

 

Prelims Links:

In India, if a religious sect/community is given the status of a national minority, what special advantages it is entitled to? (UPSC 2011)

 

  1. It can establish and administer exclusive educational institutions.
  2. The President of India automatically nominates a representative of the community to Lok Sabha.
  3. It can derive benefits from the Prime Minister’s 15-Point Programme.

 

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

 

Ans: C