A major financial fraud has surfaced in Pali district of Rajasthan, revealing an organised scheme that siphoned off approximately Rs 7 crore from the “Pradhan Mantri Kisan Samman Nidhi” (PM-Kisan) scheme. The fraudulent operation involved the creation of thousands of fake accounts under Muslim names in villages where not a single Muslim resided. These accounts, purportedly belonging to farmers from West Bengal, Uttar Pradesh, and Bihar, were used to illegitimately claim government benefits.
The scale of the scam is staggering, with nearly 29,000 fake accounts identified in Pali district alone. Specific areas affected include Desuri, where 20,000 bogus accounts were found, Rani with 9,004 such accounts, and Marwar Junction, which had 62 fraudulent accounts. This fraud took place in 2020 when the Congress-led government, under Chief Minister Ashok Gehlot, was in power in Rajasthan.
Deliberate cover-up and delayed investigation
Despite the enormity of the scam, authorities initially tried to suppress the information. Shockingly, no First Information Report (FIR) was registered at the time, and the matter was kept under wraps. However, due to mounting pressure and investigative journalism, the authorities were forced to act. Fortunately, before funds could be withdrawn from these fraudulent accounts, officials intervened and froze them, preventing further financial losses.
An exclusive investigation conducted by Hindi daily Dainik Bhaskar exposed the modus operandi of the perpetrators. The fraudulent applications for PM-Kisan benefits were submitted using e-mitra and Common Service Centers (CSC) between 2019 and August 2020. These applications, falsely claiming to represent genuine farmers, were processed through multiple government levels, from the patwari (land record officer) to the tehsildar (sub-district magistrate), and finally to the district collector. The fraudulent requests eventually reached the central government, which subsequently transferred funds to these accounts.
Modus operandi and suspicious activity
A deeper probe suggested that government ID credentials might have been hacked to facilitate the approval of these applications. Investigators are now examining whether multiple government IDs were used or if a single set of credentials was compromised.
The investigation revealed an alarming surge in applications from Desuri in 2020. On November 5 of that year, only 265 applications were pending, but by December 21, the number had skyrocketed to 19,331. This abnormal increase triggered suspicion, leading officials to scrutinize the accounts. The findings confirmed that these accounts were fraudulent, created in the names of individuals from Bihar, Uttar Pradesh, and West Bengal, with 95 per cent bearing Muslim names. However, local records indicated that no Muslim families resided in Desuri, making the fraud evident.
Further investigation showed that Rs 1.51 crore had already been transferred to 4,793 bank accounts outside Rajasthan before the fraud was uncovered. Similar discrepancies were observed in Varkana village, located in the Rani block, where 9,004 fake accounts were opened simultaneously in the name of Muslims. These accounts were registered on the same day at a single bank branch in Rani. Investigators found that three installments of PM-Kisan funds had already been credited to these accounts.
The fraudulent applications followed a well-coordinated pattern, all accounts were registered under Muslim names from outside Rajasthan, applications were processed at the same time, and approvals were granted on the government portal simultaneously. Marwar Junction was another affected region, where 62 such accounts were identified.
Similar scams in Chhattisgarh and Uttar Pradesh
This large-scale fraud in Rajasthan appears to be part of a broader pattern, as similar cases have emerged in other states. In March 2024, a comparable scam was uncovered in Bemetara district of Chhattisgarh. There, Kisan Samman Nidhi funds were disbursed to 856 fake farmer accounts, 198 of which were linked to individuals from West Bengal. The district collector launched an inquiry after these irregularities came to light.
A particularly glaring case was found in Berla block’s Bargaon village, where 656 fraudulent accounts were detected. Despite official records showing only 19 Muslim farmers in the village, funds were transferred to accounts purportedly belonging to Muslims who did not even reside in the area. This single scam resulted in an estimated loss of nearly ₹3 crore.
Similarly, in Moradabad’s Bilari region of Uttar Pradesh, a fraudulent Aadhaar card racket was exposed. An individual named Wajid Malik was caught operating an illegal Aadhaar center, fabricating identity documents for financial frauds. When the police raided the facility near Bilari Kotwali police station, they found stacks of documents, fake Aadhaar cards, and related equipment. The investigation suggested that hundreds of Aadhaar cards had been illegally modified, especially after incidents of violence in Sambhal, raising concerns over potential misuse for financial scams and electoral fraud.
Bangladeshi SIM cards used for cross-border crimes
In a parallel concern for national security, an investigative report by Dainik Bhaskar uncovered the widespread sale of Bangladeshi SIM cards in Murshidabad district of West Bengal. These foreign SIMs, readily available in the local markets of Shrirampur, a border village, have become instrumental for smugglers and traders engaged in illicit activities across the India-Bangladesh border.
According to the report, a local trader named Mohammad Ashfaq openly admitted to using Bangladeshi SIM cards to avoid international call charges. These SIMs, which operate within Indian territory due to the extended range of Bangladeshi telecom networks, allow users to bypass security surveillance. A local agent revealed that these SIMs are sold in border villages for Rs 5,000 each, with transactions kept anonymous to evade authorities.
The Border Security Force (BSF) has acknowledged the difficulty of tracking these foreign SIMs. Senior officials, including DIG NK Pandey and DIG Anil Kumar Sinha, have highlighted the challenge posed by these unauthorised networks. Despite intensified patrols, security forces are struggling due to the lack of cooperation from Bangladeshi telecom companies and limitations in surveillance technology.
Need for stronger oversight and policy reforms
The exposure of these scams and security loopholes underscores the urgent need for stricter oversight mechanisms in government welfare schemes. The fraudulent diversion of PM-Kisan funds highlights vulnerabilities in the verification process, which criminal networks have exploited at an alarming scale.
To prevent such frauds in the future, authorities must implement enhanced security measures, such as biometric verification, stricter scrutiny of applications, and cross-state coordination among law enforcement agencies. The illegal Aadhaar card network and the unchecked sale of foreign SIM cards further complicate matters, demanding stronger cybersecurity protocols and international cooperation to curb financial and security risks.
While government agencies have taken steps to freeze fraudulent accounts and launch investigations, systemic reforms are required to ensure the integrity of welfare programs and safeguard India’s internal security. The recent revelations serve as a stark reminder of the persistent threats posed by organised financial frauds and cross-border crimes, necessitating swift and decisive action by both state and central authorities.
