Alleged financial irregularities of up to ₹600 crore have surfaced in Tamil Nadu’s women-focused welfare programmes, following a review by an audit team. The findings have triggered allegations that officials are trying to blunt the inquiry by arranging a separate audit panel even before the ongoing exercise is completed.
Women’s schemes are implemented through the Tamil Nadu Corporation for Development of Women, including the State Rural Livelihood Mission, the Urban Livelihood Mission and the Rural Transformation Project. The report notes that the government allocates roughly ₹1,000 crore to ₹1,800 crore annually for self-help group (SHG) initiatives, apart from bank-linked credit.
According to audit officials quoted in the report, funds received from the Centre were not spent as intended, and irregularities were found across district project offices, block offices and panchayat-level offices. They also alleged that most staff are on contract, limiting vigilance scrutiny, and that large money transfers in some bank accounts were not flagged by tax authorities.
The audit was initiated after then Managing Director Shajeevathana (IAS) reviewed complaints and ordered a detailed verification on March 5, appointing a team led by IAS officer Venkatesan to examine spending across 388 blocks and 12,560 panchayats. Retired senior accounts officials from departments including audit, treasury and ELCOT were included; they began work on March 9, examined ledgers and receipts brought to the Chennai head office, and visited districts and banks to verify transactions.
The report lists alleged methods of diversion such as loans meant for poor beneficiaries being issued in relatives’ names, payments claimed for trainings that were not conducted, and bills raised for equipment—including agricultural machinery and drones—that were allegedly never purchased. It also cites inflated office expenses and fabricated attendance and signatures to withdraw funds, and says letters have been sent to district collectors as action has begun.
