Ghost students, fake schools, and Rs 57 lakh vanished: All you need to know about the Madhya Pradesh Scholarship Scam
A major scholarship scam worth over ₹57 lakh has emerged in Bhopal, Madhya Pradesh, where more than 40 educational institutions (23 private schools and 17 madrasas) allegedly siphoned off government funds using fake or ineligible students. The scam exploited a Central Government scholarship scheme (Pre/Post-Matric Minority Scholarship Scheme) for minority students with ₹5,700 annual grants.
On 17th June, 2025, the scam came to light when the Backwards Classes and Minority Welfare Board filed a formal complaint with the Bhopal Police. The complaint was submitted in coordination with the Union Ministry of Minority Affairs, alleging misuse of the scholarship scheme.
Anatomy of a scam
According to the investigation done by NDTV, there are multiple ghost institutions that only run on paper, with fabricated student records. One school in the Jahangirabad locality claimed ₹1.65 lakh for 29 non-existent students. According to the locals, “That board of “City Montessori School” has been up for two years, but no school ever opened”. Similar scenes unfolded at Amberly House School, now replaced by clinics and shops. At MJ Convent, investigators found posters for Class 10 toppers but none for senior grades and the staff of St. D’Souza Convent fled when asked about missing Class 11–12 students.
Schools that are approved only for classes 1-8 or 10 also fraudulently apply for scholarships for Classes 11–12. The money was transferred using shell accounts. Funds were routed to bank accounts of operators’ relatives or contacts, not students. The money was withdrawn immediately after disbursal. Applications bypassed scrutiny through MP Online’s scholarship portal by uploading fake documents with manipulated data. The nodal officers’ rubber stamp was also used without verification.
Systemic collusion
According to the FIR, 972 fake students across 40 institutions in Bhopal point to institutionalised corruption. They shared fake addresses with multiple schools running from a single building.
The government officials showed pure negligence as Nodal officers forwarded applications without physical checks. The fraud was exposed after the Union Ministry of Minority Affairs flagged discrepancies in student records. The fraud is not limited to Bhopal. 104 institutions across Madhya Pradesh are now under scrutiny for similar violations.
Political fallout
Minister of State for Backward Classes and Minority Welfare Krishna Gaur distanced herself from the time frame of this case and said, “This scam is from before my tenure. However, we have started a departmental inquiry, and I will personally ensure that strict action is taken against the culprits. No one has the right to usurp the scholarship amount of the students. The government is committed to the welfare of the minority and backward classes.
Legal action
Crime Branch officials have begun questioning school operators and directors of the involved institutions. They are also collecting documentation from education authorities at the district and state levels. The FIR has been registered under the sections of cheating, forgery, criminal breach of trust, and misappropriation of public funds.
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