Rs. 56 cr irregularities found in SHG loans: Dinakar

Vijayawada: A review meeting chaired by Lanka Dinakar, chairman of the Twenty-Point Programme Implementation Committee, revealed significant irregularities in loans issued to Self-Help Groups (SHGs) between 2019 and 2024 during the YSRCP government’s tenure. The probe found that over Rs 56 crore was siphoned off through fake SHGs across the state.

The meeting, held on Wednesday at the Secretariat, included top officials from SERP (Society for Elimination of Rural Poverty) and Mepma (Mission for Elimination of Poverty in Municipal Areas). The chairman took up the review following a complaint from Assembly Speaker Chintakayala Ayyanna Patrudu, who had flagged fraudulent loans worth over Rs 3 crore to fake groups in Anakapalle district.

Officials reported that fake groups in rural areas misappropriated Rs 37.51 crore, with Rs 26.86 crore still outstanding. The highest irregularities were found in Kakinada (Rs 18.78 crore), Tirupati (Rs 8.08 crore), and Anakapalle (Rs 2.86 crore).

In urban areas, Rs 18.55 crore was diverted through 98 fake groups. The largest misuse occurred in Gudivada (Rs 6.30 crore), followed by Ongole (Rs 5.98 crore), Kakinada (Rs 4.68 crore), and Anantapur (Rs 1.59 crore).

Dinakar directed officials to cross-verify all district-level data to ascertain the full extent of the fraud and prepare a detailed report for Chief Minister N Chandrababu Naidu.

The new government has introduced several reforms to prevent future fraud and strengthen SHGs. Aadhaar-linked biometric authentication is now mandatory to prevent fake memberships and groups. The ‘Mana Dabbulu – Mana Lekka’ app allows every rural SHG member to track their loan and repayment details on their mobile phone.

A similar ‘Mahila Aakash’ app has been introduced for urban SHGs. The new system disburses loans to individual members rather than to the entire group at once, ensuring funds are used for productive purposes. Legal cases have been filed against those responsible, including errant officials.

The Chief Minister set a target of empowering one lakh SHG women to become entrepreneurs under the ‘One Family – One Entrepreneur’ initiative, with 70,000 women in rural areas and 30,000 in urban areas.

This is part of the state’s vision to be the leading contributor to the Prime Minister’s ‘Lakhpati Didis’ scheme, creating the largest number of women entrepreneurs in the country.