Living Workers Declared Dead, Lakhs Siphoned Off, Claim Madhya Pradesh Villagers

A case from Satna district has once again spotlighted the gaps in Madhya Pradesh's welfare delivery system. 

In an alleged scam that embarrasses the government, funds meant to support poor labourers under the Sambal Yojana were siphoned off by declaring living people dead.

The revelations come from Rahikwara Gram Panchayat, under Nagaud Janpad Panchayat, where lakhs of rupees were allegedly embezzled from the government treasury. 

Officials, villagers allege, forged death certificates and withdrew funeral and compensation payments meant for the families of deceased workers.

On January 10, 2021, a funeral payment of Rs 5,000 and compensation of Rs 2 lakh were withdrawn in the name of Sajjan Chaudhary, a resident of Rahikwara Panchayat, after he was officially declared dead. 

But Sajjan is very much alive and now fighting to prove it. 

"They used my name, made fake papers, and took the money," he told officials.

A similar fraud took place on January 14, 2020, when Ganpat Kushwaha, son of Ramdulare Kushwaha, was declared dead. 

The same Rs 2 lakh was released in his name. 

Villagers allege that the Panchayat Secretary and other officials jointly processed the paperwork and withdrew the amount through forged documents.

The scam didn't stop at the living. 

When Ramcharan Chaudhary, son of Lalua Chaudhary, died on April 12, 2020, the compensation due to his family was instead transferred into another person's account. His relatives were never informed, exposing how even genuine beneficiaries were denied their rightful aid.

Outraged villagers have demanded a criminal probe and strict action against all responsible officials. 

"This is not an error, it's organised loot," one resident said. 

"The officers made fake death certificates, stole money meant for the poor, and thought no one would find out."

District Panchayat CEO Shailendra Singh confirmed the receipt of a complaint during the public hearing. 

"An investigation has been ordered. If the allegations are proven, strict action will be taken against those involved. Similar cases, if found elsewhere, will also be examined," Singh said.

This is not an isolated case. 

In 2024, an NDTV investigation had uncovered a massive scam in Bhopal, revealing how government officials declared living construction workers dead on paper to siphon off crores of rupees under the Madhya Pradesh Building and Other Construction Workers Welfare Board.

The CAG's 2025 report later validated NDTV's findings, revealing that in 142 cases, Rs 1.68 crore was deposited into 52 bank accounts that did not belong to registered workers. 

The modus operandi was identical fake death certificates, forged nominee accounts, and systematic plundering of the compensation funds meant for labourers' families.