Uttar Pradesh National Rural Health Mission (NRHM)

Scam

Overview
The Uttar Pradesh National Rural Health Mission (NRHM) scam is one of the
largest financial scams in the state's history, involving the misappropriation of
funds intended for healthcare improvements in rural areas. The scam came to light
between 2007 and 2011, involving multiple highranking officials, politicians, and
contractors.

National Rural Health Mission (NRHM)

Objective: Launched in 2005, the NRHM aimed to improve healthcare delivery
across rural India, focusing on infrastructure, access to services, and reducing child
and maternal mortality rates.
Funding: Significant funds were allocated by the central government to state
governments, including Uttar Pradesh, to achieve these goals.

Nature of the Scam

The scam involved the embezzlement of funds meant for the NRHM, which were
siphoned off through various fraudulent activities. These included:
Fictitious Bills: Creation of fake bills and inflated invoices for nonexistent
medical supplies and services.
Kickbacks and Bribery: Corruption at various levels, with officials receiving
kickbacks for awarding contracts and releasing payments.
NonExistent Projects: Funds were shown as utilized for projects that either did not
exist or were never completed.

Key Players
Politicians: Senior political figures in the state government were implicated.
 Babu Singh Kushwaha: A prominent politician and former Family Welfare
Minister in Uttar Pradesh, was one of the main accused. He was alleged to have
orchestrated the embezzlement of funds.
Bureaucrats: Highranking officials in the health department, including Chief
Medical Officers (CMOs), were found to be involved.
Dr. S.P. Ram: Former Director General of Family Welfare.
Dr. Y.S. Sachan: Deputy Chief Medical Officer, who was mysteriously found
dead in jail, suspected of being murdered to prevent him from revealing details of
the scam.
Contractors: Private contractors who were awarded contracts for supplying
medical equipment and constructing healthcare facilities were part of the
fraudulent network.
Manoj Gupta: A key contractor implicated in the scam.
Middlemen: Individuals who facilitated the transfer of bribes and kickbacks.

Key Events and Timeline

20072011: The period during which the bulk of the scam took place, with funds
being systematically diverted.
April 2011: The first reports of irregularities in the NRHM funds surfaced. The
death of Dr. Vinod Arya, Chief Medical Officer (CMO), Family Welfare, was the
first indication of the scam.
June 2011: The murder of Dr. B.P. Singh, another CMO, brought more attention
to the issue, suggesting that the deaths were linked to the scam.
July 2011: Dr. Y.S. Sachan, Deputy CMO, was found dead in the Lucknow
District Jail under suspicious circumstances. It was widely believed that he was
silenced to prevent him from exposing higherups involved in the scam.
November 2011: The Central Bureau of Investigation (CBI) took over the
investigation following the UP government’s request and public outcry.
2012: The CBI arrested several highprofile individuals, including politicians and
bureaucrats, uncovering the vast network of corruption.
Investigation and Findings
Central Bureau of Investigation (CBI): The CBI’s investigation revealed
widespread corruption and financial irregularities involving the embezzlement of
NRHM funds.
Modus Operandi: The investigation uncovered how funds were diverted through
fake bills, inflated invoices, and nonexistent projects.
Arrests: Several officials, including Babu Singh Kushwaha and Dr. S.P. Ram,
were arrested. Contractors and intermediaries like Manoj Gupta were also taken
into custody.
Financial Impact: The estimated misappropriation was around ₹10,000 crore
(approximately $1.4 billion).

Implications and Consequences

Healthcare Impact: The diversion of funds severely impacted healthcare delivery
in rural areas, depriving millions of essential medical services and infrastructure.
Unfinished Projects: Numerous healthcare centers and infrastructure projects
remained incomplete or nonfunctional due to the misappropriation of funds.
Public Trust: The scam eroded public trust in government programs and the
administration's commitment to improving rural healthcare.
Policy Reforms: The scandal prompted calls for stricter oversight, transparency,
and accountability in the implementation of government schemes.

Key Developments PostScam

Judicial Actions: Several cases were filed in various courts against the accused,
but the judicial process has been slow and hindered by political influences.
Current Status: Some trials are still ongoing, and many accused individuals
remain under investigation or awaiting trial.
 Death of Whistleblowers: The mysterious deaths of whistleblowers and key
witnesses, such as Dr. Vinod Arya, Dr. B.P. Singh, and Dr. Y.S. Sachan,
highlighted the dangerous repercussions for those exposing corruption.
Safety Concerns: These deaths raised serious concerns about the safety of
whistleblowers in India and the need for better protection mechanisms.

Lessons Learned
Strengthening Oversight: The need for robust monitoring mechanisms to prevent
misuse of public funds.
Independent Audits: Regular and independent audits of government programs to
ensure transparency and accountability.
Transparency and Accountability: Ensuring transparency in the allocation and
utilization of funds, with regular audits and public disclosure of expenditures.
Public Participation: Involving community members and civil society
organizations in monitoring government schemes.
Whistleblower Protection: Safeguarding whistleblowers who expose corruption
and fraud, ensuring their safety and encouraging more individuals to report
malpractices.
Legislative Measures: Strengthening laws and policies to protect whistleblowers
and provide them with a safe channel to report corruption.
Judicial Efficiency: The importance of a swift and impartial judicial process to
prosecute those involved in corruption and recover misappropriated funds.
Reforms: Implementing judicial reforms to expedite the handling of corruption
cases and ensure timely justice.

Conclusion
The Uttar Pradesh National Rural Health Mission scam highlighted significant
weaknesses in the implementation and oversight of government schemes. It
underscored the necessity for systemic reforms to ensure that public funds are used
effectively to achieve their intended goals, particularly in critical sectors like
healthcare. The scandal remains a stark reminder of the detrimental impact of
corruption on public welfare and the importance of vigilance, transparency, and
accountability in governance.

Uttar Pradesh Food Grains Scam

Overview
Time Period: The Uttar Pradesh food grains scam primarily unfolded between
2004 and 2010.
Scope: It involved the largescale pilferage and blackmarketing of food grains
meant for the poor under various government schemes.
Impact: Estimated at around ₹35,000 crore (approximately $5 billion), making it
one of the largest food distribution scams in India's history.

Government Schemes Involved

1. Public Distribution System (PDS)
Objective: To provide subsidized food grains to the poor.
Mechanism: Distribution through a network of ration shops.
Products: Wheat, rice, sugar, and kerosene at subsidized rates.
2. Antyodaya Anna Yojana (AAY)
Objective: Targeted the poorest of the poor, providing highly subsidized food
grains.
Mechanism: Distribution of food grains at very low prices.
3. MidDay Meal Scheme
Objective: Provided free lunches to school children to improve nutritional levels
and school attendance.
Mechanism: Cooked meals served in government and governmentaided schools.
4. Integrated Child Development Services (ICDS)
Objective: Offered food, preschool education, and primary healthcare to children
under six and their mothers.
Mechanism: Delivery of services through anganwadi centers.

Nature of the Scam

Pilferage of Food Grains: Large quantities of food grains meant for distribution to
the poor were diverted to the open market.
Method: Grains were siphoned off during transportation or from storage facilities
and sold at higher prices in the black market.
Fake Beneficiaries: Creation of fake ration cards and beneficiaries to siphon off
the grains.
Method: Officials and ration shop owners created fictitious entries in records to
divert food grains.
Corrupt Practices: Involvement of officials at various levels, from local ration
shop owners to senior bureaucrats, in misappropriating the food grains.
Method: Bribes and kickbacks facilitated the smooth operation of the scam.
Transport and Storage Fraud: Manipulation in the transport and storage of food
grains to cover up the diversion and pilferage.
Method: Alteration of transport documents and storage records to hide the actual
amount of grains being misappropriated.

Key Players
Politicians: Several political figures in Uttar Pradesh were implicated.
Naseemuddin Siddiqui: Senior BSP (Bahujan Samaj Party) leader and former
minister, accused of being involved in the scam.
Bureaucrats and Officials: Highranking officials in the Food and Civil Supplies
Department were involved.
 Rajiv Kumar: Principal Secretary of the Food and Civil Supplies Department
during the scam period, accused of facilitating the fraud.
Local Ration Shop Owners: Played a crucial role in diverting the food grains
meant for distribution to the poor.
Transport Contractors: Involved in manipulating transport records to divert food
grains to the black market.

Key Events and Timeline

20042010: The period during which the bulk of the scam took place, with
systematic pilferage and diversion of food grains.
Initial Signs: Reports of shortages in ration shops and discrepancies in records
began to surface.
2009: The first indications of irregularities were reported, with complaints about
the diversion of food grains meant for PDS.
Public Complaints: Beneficiaries reported not receiving their entitled rations,
prompting initial investigations.
2010: The Allahabad High Court directed a Central Bureau of Investigation (CBI)
probe into the scam following a Public Interest Litigation (PIL).
PIL Filed: Activists and concerned citizens filed a PIL seeking an investigation
into the irregularities.
2011: The CBI officially took over the investigation, uncovering a massive
network of corruption and fraud.
CBI Involvement: The agency began extensive investigations, conducting raids,
and examining records.
2012: Multiple arrests were made, and chargesheets were filed against several
highprofile individuals, including politicians and bureaucrats.
Arrests: Key figures like Naseemuddin Siddiqui and Rajiv Kumar were arrested.
Chargesheets: Detailed chargesheets outlining the modus operandi and the roles
of various individuals were filed.
Investigation and Findings
Central Bureau of Investigation (CBI): The CBI’s investigation revealed the depth
and extent of the scam.
Modus Operandi: The investigation uncovered how food grains were
systematically diverted using fake ration cards, manipulated transport records, and
corrupt officials.
Fake Ration Cards: Thousands of fake ration cards were created to divert
grains.
Manipulated Records: Transport and storage records were falsified to hide the
discrepancies.
Arrests: Several officials, including senior bureaucrats like Rajiv Kumar and
political figures like Naseemuddin Siddiqui, were arrested.
Financial Impact: The estimated misappropriation was around ₹35,000 crore,
involving the diversion of thousands of tonnes of food grains.

Key Figures Involved

Naseemuddin Siddiqui: Senior BSP leader and former minister, accused of being a
key player in orchestrating the scam.
Role: Allegedly used his political influence to facilitate the diversion of food
grains.
Rajiv Kumar: Principal Secretary of the Food and Civil Supplies Department,
arrested for his alleged involvement in facilitating the scam.
Role: Accused of overseeing the operations and ensuring the smooth execution
of the fraud.
Local Ration Shop Owners: Many were arrested for their roles in diverting food
grains meant for the poor.
Role: Played a crucial role in the last mile of the diversion, ensuring that the
grains did not reach the intended beneficiaries.
Transport Contractors: Manipulated transport records to aid in the diversion of
food grains.
 Role: Responsible for the actual movement of grains and ensuring that diverted
grains reached the black market.

Implications and Consequences

Impact on the Poor: The diversion of food grains meant that millions of poor and
needy individuals did not receive their entitled rations, leading to increased hunger
and malnutrition.
School Children: The MidDay Meal Scheme and ICDS suffered, affecting the
nutrition and health of children.
Nutritional Deficiencies: Lack of access to food grains impacted the health and
development of children dependent on these schemes.
Public Trust: The scam severely eroded public trust in government schemes and
the integrity of public distribution systems.
Policy Reforms: The scandal prompted calls for stricter oversight, transparency,
and accountability in the distribution of food grains.
Enhanced Monitoring: Implementation of better monitoring systems to track the
movement and distribution of food grains.
Economic Impact: The misappropriation of funds meant for welfare schemes led
to significant financial losses for the government.
Budgetary Reallocations: Funds that could have been used for other
developmental activities were lost, impacting overall economic growth.

Key Developments PostScam

Judicial Actions: Several cases were filed in various courts against the accused,
but the judicial process has been slow.
Current Status: Trials are ongoing, with many accused still under investigation or
awaiting trial.
Pending Cases: A backlog of cases has delayed justice for many of those
involved.
 CBI Investigations: The CBI has continued to probe the scam, uncovering new
details and making further arrests.
Continued Arrests: New individuals involved in the scam have been identified
and arrested.
Whistleblower Safety: The case highlighted the risks faced by whistleblowers and
the need for better protection mechanisms.
Whistleblower Protection: Calls for stronger laws and measures to protect those
who expose corruption.

Lessons Learned
Strengthening Oversight: The need for robust monitoring mechanisms to prevent
misuse of public funds.
Independent Audits: Regular and independent audits of government schemes to
ensure transparency and accountability.
RealTime Monitoring: Use of technology to monitor the movement and
distribution of food grains in realtime.
Transparency and Accountability: Ensuring transparency in the allocation and
utilization of food grains, with regular audits and public disclosure of expenditures.
Public Participation: Involving community members and civil society
organizations in monitoring government schemes.
Social Audits: Regular social audits involving community members to review
the implementation of schemes.
Whistleblower Protection: Safeguarding whistleblowers who expose corruption
and fraud, ensuring their safety and encouraging more individuals to report
malpractices.
Legislative Measures: Strengthening laws and policies to protect whistleblowers
and provide them with a safe channel to report corruption.
Whistleblower Act: Enactment and enforcement of strong whistleblower
protection laws.
 Judicial Efficiency: The importance of a swift and impartial judicial process to
prosecute those involved in corruption and recover misappropriated funds.
Reforms: Implementing judicial reforms to expedite the handling of corruption
cases and ensure timely justice.
FastTrack Courts: Establishment of fasttrack courts to handle corruption cases
swiftly.

Conclusion
The Uttar Pradesh food grains scam highlighted significant weaknesses in the
implementation and oversight of government distribution schemes. It underscored
the necessity for systemic reforms to ensure that public funds and resources are
used effectively to achieve their intended goals, particularly in critical areas like
food security. The scandal remains a stark reminder of the detrimental impact of
corruption on public welfare and the importance of vigilance, transparency, and
accountability in governance. Addressing these issues requires a multifaceted
approach, including stronger oversight, better protection for whistleblowers, and a
more efficient judicial system.