A fraud of ₹90 lakh was uncovered in the Madhu Babu pension scheme in the Binjharpur block of Odisha’s Jajpur district. Money was withdrawn from the scheme and later distributed to ineligible beneficiaries.

It came to light after the local Binjharpur Block Development Officer lodged a police complaint and reported the matter to the district collector.

People usually receive the old age pension under two schemes — the central scheme and the state’s Madhu Babu pension scheme. Those who have been deprived of assistance under the central scheme are entitled to receive money under the Madhu Babu scheme.

While the money under the central scheme is directly credited to the beneficiaries’ accounts through DBT, under the state-sponsored scheme, the money is distributed through the Panchayat Extension Officer (PEO). Under the state pension scheme, the beneficiaries get ₹1,000, ₹1,200, and ₹1,400 monthly as per the age bar. One should be over 60 years old, subject to meeting the guidelines, to avail of a minimum pension of ₹1,000 pension.

“Sometimes, the PEOs take fraudulent routes and list names of those not entitled to avail the pension. Later they prepare the list of those not entitled to get the money and get the sanction from the block level and get the money. It’s a racket. The local official gets his share and the ineligible people also benefit. It’s a quid-pro-quo situation” admitted a senior official.