Home India India’s Madhya Pradesh probes Rs 230 crore salary scam involving 50,000 ‘ghost’ employees

India’s Madhya Pradesh probes Rs 230 crore salary scam involving 50,000 ‘ghost’ employees

by bodhiwire
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Bhopal, June 8: Authorities in India’s central Madhya Pradesh state have launched a wide-ranging probe after the discovery of a suspected salary scam involving nearly 50,000 government workers who have not been paid for over six months, officials said.

The unpaid wages, totalling an estimated Rs 230 crore ($27.6 million), are linked to employees who exist in government payroll records with valid identification numbers but have not received salaries since December 2024, according to internal communications accessed by media outlets.

Of the workers affected, 40,000 are regular employees, while the rest are temporary or contractual staff, officials said. The revelation has prompted suspicions of widespread irregularities, including the possible existence of thousands of non-existent or “ghost” employees.

The issue came to light after a letter dated May 23 from the Commissioner of Treasury and Accounts (CTA) flagged discrepancies to Drawing and Disbursing Officers (DDOs) across departments. The CTA directed a manual verification of records and asked more than 6,000 officers to respond within 15 days — a deadline that expired on Saturday.

“We regularly conduct data analysis and this discrepancy stood out. I want to clarify that it’s not about salaries being paid to these accounts; the inquiry is meant to curb any potential embezzlement,” said Bhaskar Lakshkar, the commissioner of Treasury and Accounts.

The letter noted that despite valid employee codes in the state’s financial management system, no salary payments were being processed, and no exit procedures had been initiated — raising the possibility that some employees were suspended, on unpaid leave, or do not exist.

Opposition parties have seized on the issue, calling it one of the largest salary scams in the state’s history and demanding a federal investigation.

“MASSIVE SALARY SCAM in BJP-ruled Madhya Pradesh. 50 thousand ‘ghost’ workers in Rs 230 crore scam. ED sleeping, CBI sleeping, IT sleeping… Washing machine at work??” Trinamool Congress MP Sagarika Ghose posted on X.

When pressed by reporters on the matter, Madhya Pradesh Finance Minister Jagdish Devda offered a brief response: “Whatever process is followed, it is done according to rules,” before walking away without elaborating.

Critics say the case underscores systemic weaknesses in employee verification and financial oversight, and raises critical questions about how government departments continued to operate despite an apparent 9% shortfall in workforce.

The treasury department has ordered DDOs to certify that no unauthorised employees are drawing salaries under their jurisdictions, and a state-wide probe is ongoing.

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