The Ministry of Minority Affairs has discovered that at least 830 minority institutions registered with the National Scholarship Portal (NSP) are either fake or not operational, The Indian Express has learned. These 830 institutions, it is learned, received scholarships worth 144 crores from the Centre in the last five years.

A year-long investigation by the National Council of Applied Economic Research (NCAER) into minority scholarships, which was commissioned by the Ministry of Minority Affairs in August 2022 after some discrepancies came to light, has revealed that over 10,000 scholarships were awarded to ineligible students.
High number of fake and non-operational institutes found across multiple states
The sources said that the government believes that the number of fake or non-operational institutions could be higher than the 830 institutes that were investigated. They said that there are around 1.8 lakh institutes across the country that are registered with the NSP for the distribution of minority scholarships. The NCAER has submitted its report to the Ministry, and it found that 53% of the institutes investigated were either fake or non-operational. Of these 830 institutions, the NCAER found 62 in Chhattisgarh to be non-operational, besides 99 in Rajasthan.A large number of institutes in Assam, Karnataka, Uttarakhand, Uttar Pradesh, Madhya Pradesh and West Bengal were found to be either fake or non-operational.
The minority scholarships were digitized and integrated into the National Scholarship Portal (NSP) in 2016. According to sources, the Ministry has released more than Rs.2,000 crore annually for minority scholarship schemes over the past five years. The total amount disbursed between 2007-8 and 2021-22 was Rs.22,000 crores.
Reverification of institutes and beneficiaries initiated by Ministry
Smriti Irani, the Minister of Minority Affairs, informed Parliament during the recently concluded Monsoon Session that her Ministry had begun the reverification of institutes and beneficiaries. The task of monitoring and evaluation of the scholarship scheme was assigned to NCAER.
One of the most serious problems discovered was the use of fake institutions that had registered with UDISE, a system that collects information on recognized and unrecognized schools. The scholarship process has been found to be rife with systemic institutional corruption involving institutions, local administration, and banks.


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