DWCRA funds misused during 2019-24, Minister tells Legislative Assembly

Allegations of large-scale financial irregularities in DWCRA self-help groups between 2019 and 2024 dominated proceedings in the Legislative Assembly on Friday, as the government detailed corrective measures and disciplinary action taken to curb misuse of funds.

MSME, SERP and NRI Empowerment Minister Kondapalli Srinivas responded to a calling attention motion moved by Prathipadu MLA Burla Ramamjaneyulu on the alleged diversion and mismanagement of funds in the DWCRA groups.

The Minister stated that DWCRA self-help groups (SHGs), strengthened during the tenure of Chief Minister N. Chandrababu Naidu between 1995 and 2004, had evolved into a national model for women’s empowerment, with nearly ₹92,000 crore currently extended to rural women through bank linkages.

However, he acknowledged irregularities during 2019–2024, including diversion of loans and savings, creation of fake SHGs, bogus bank accounts and accounting lapses. Misuse of ₹12.40 crore under Stree Nidhi was detected, with partial recovery effected. Disciplinary action was initiated against several Village Organisation Assistants and cluster-level staff, and 33 FIRs were registered, he said. Overall NPAs were reported at ₹237.30 crore (46%), he added.

To strengthen oversight, the government introduced Aadhaar-based biometric authentication, DBT, geo-fencing, facial recognition and the ‘Mana Dabbulu Mana Lekhalu’ app, removing over 17,613 fake SHGs and 4.96 lakh bogus members, the Minister said.