Kerala pension fraud: Officials uncover BMW owners among beneficiaries

The latest instance of malpractice was reported from the Kottakkal Municipality in Malappuram district of Kerala, where a targeted audit revealed 38 out of 42 pension recipients were ineligible

An audit by the Kerala Finance Department has uncovered alarming cases of ineligible individuals fraudulently claiming social security pensions. Among the shocking revelations were owners of luxury BMW cars and residents of air-conditioned homes listed as beneficiaries of a scheme meant for the underprivileged, officials confirmed on Friday, according to a PTI report. 

 

The latest instance of malpractice was reported from the Kottakkal Municipality in Malappuram district, where a targeted audit revealed 38 out of 42 pension recipients examined were ineligible, with one listed beneficiary found deceased. The findings have prompted the state government to expand the audit statewide, aiming to cleanse the beneficiary list of all ineligible recipients.  

 

What is Kerala’s social security pension scheme?

 

Kerala’s social security pension scheme supports vulnerable groups, including the elderly, widows, and people with disabilities. The state offers a monthly pension of Rs 1,600 to approximately 6.2 million beneficiaries. The scheme is managed by local bodies such as Grama Panchayats, Municipalities, and Corporations. Applications are facilitated through the Sevana Pension platform.

 

Eligibility criteria vary with the scheme and are based on income limits and residency requirements. For instance, the ‘Indira Gandhi National Old Age Pension Scheme’ requires applicants to be aged 60 or older, have an annual family income below Rs 1 lakh, and have resided in Kerala for at least three years.

 

Steps taken by the state finance minister 

 

State Finance Minister K N Balagopal has taken a tough stance, ordering a vigilance inquiry into officials who facilitated these irregularities. The probe will target eligibility verifiers, revenue officials issuing income certificates, and those approving pensions. The state Finance Department has also directed administrative departments to ensure swift follow-up actions.  

 

The Information Kerala Mission’s earlier findings uncovered 1,458 government employees, including gazetted officers and college professors, fraudulently claiming pensions, prompting disciplinary action against those involved.

 

Ineligible beneficiaries spark corruption probe

 

Finance Department officials suspect corruption and collusion behind the large-scale inclusion of affluent individuals in the welfare scheme. Cases of ineligible beneficiaries residing in lavish homes exceeding 2,000 square feet and spouses of government pensioners claiming welfare pensions further highlight the scale of the fraud.  

 

To prevent future abuse, the government has instructed local self-governing bodies to regularly evaluate the eligibility of pension recipients. Additionally, all payments will continue to be routed through bank accounts to maintain transparency.