Jai Bhim Scheme Fraud: Nine Arrested as ₹37 Crore Coaching Racket Unfolds

In a major breakthrough, the Anti-Corruption Branch (ACB) has unearthed a ₹37.20-crore fraud linked to Delhi’s flagship welfare initiative, the ‘Jai Bhim Mukhyamantri Pratibha Vikas Yojana’ , exposing a sophisticated network of coaching institutes accused of systemic manipulation . Nine individuals, including owners, directors and associates , have been arrested and remanded to 14-day judicial custody , as investigators widen the probe into what may be a larger financial irregularity spanning multiple years .

Launched in 2017 , the scheme aimed to provide free coaching and financial assistance to students from Scheduled Caste (SC) communities preparing for competitive exams, later expanding to include Scheduled Tribe (ST), Other Backward Classes (OBC), and Economically Weaker Sections (EWS) . However, officials now say the initiative was exploited through coordinated fraud mechanisms that allowed institutes to siphon off public funds.

At the core of the scam were fake and duplicate student enrolments . Investigators found that institutes submitted inflated lists , often repeating the same names across multiple centres. Many students, when questioned, denied enrolling in more than one institute , indicating the use of fabricated admission records to claim higher reimbursements. In several cases, thousands of students could not be verified , raising serious concerns over data integrity.

The probe further revealed widespread use of forged documentation , including incomplete or falsified application forms, enabling institutes to generate fraudulent billing claims . Since payments under the scheme were linked to per-student funding , inflated numbers translated directly into higher financial claims , with some reports indicating massive overbilling far exceeding sanctioned budgets .

Equally troubling was the diversion of stipends , where funds meant for students were either withheld, delayed, or transferred only after the investigation began , suggesting attempts to cover tracks. Investigators also found that several institutes violated financial norms by failing to maintain separate bank accounts , thereby obscuring audit trails and enabling easier fund diversion.

In another breach of guidelines, enrolled students were allegedly redirected to low-cost local tuition centres , while institutes continued to claim full reimbursement amounts , pocketing the difference.

Officials have also pointed to weak regulatory oversight , citing inadequate verification mechanisms and lack of stringent audits as key factors that allowed the fraud to persist.

With indications that the scam could be part of a much larger pattern of misuse , the ACB has intensified its investigation to identify additional beneficiaries and establish the full scale of the fraud , raising urgent questions about accountability in welfare delivery systems.