Rs 108 crore rural women funds pocketed by staff, kin: TNCDW audit

MADURAI: Money meant to lift impoverished rural women out of poverty ended up lining the pockets of the very officials tasked with helping them. A special audit of the Tamil Nadu Corporation for Development of Women (TNCDW) has uncovered a widespread racket where welfare funds were stealthily redirected into the personal bank accounts of Block Mission Managers (BMMs), Block Coordinators (BCs), and their immediate relatives.

The damning audit has exposed financial irregularities to the tune of Rs 107.94 crore across 186 blocks. Aside from straight money transfers, auditors uncovered outright bill manipulation and payments made without basic supporting documents.

"These amounts are meant to improve the livelihood of rural women," said Radhakrishnan, a Theni-based RTI activist who obtained the audit documents through the Right to Information Act.

In Sembanar Koil block of Mayiladuthurai district, Rs 42 lakh intended for 42 Panchayat Level Federations under the Vulnerability Reduction Fund was transferred to BMM Vimala and five other individuals. Though the full sum was later recovered, the breach exposed systemic vulnerabilities.

In the Kuttalam block of the same district, audit spotted a Rs 1.64 lakh bill altered for notebook purchases alongside a blank bill attached to claim Rs 60,000 for self-help group training. Offending officials in Mayiladuthurai were subsequently terminated and faced police action to retrieve unrecovered balances.

The malaise extended to other districts as well. In Villupuram’s Vallam block, Rs 35 lakh meant as incentives was redirected under the names of T Elumalai and Raghul Agency to open a petrol pump before authorities clawed it back. In KV Kuppam block, Vellore district, Rs 2.92 lakh allocated as honorariums for 39 federations was diverted into the personal accounts of five individuals.

So far, authorities have managed to recover Rs 1.43 crore directly from BMMs who routed funds into personal and family accounts. An additional Rs 3.61 crore that sat idle in dormant accounts for years was retrieved and deposited back into the state treasury in May 2026.

The probe was triggered after the TNCDW financial adviser, internal auditors, and anonymous whistleblowers flagged widespread rot in several blocks. To stem the damage, the Managing Director ordered a sweeping check across all 388 blocks in the state. The 15th Audit Committee recommended the exercise on March 5, 2026, with the board clearing it the very next day.

Commencing on March 9, 2026, the investigation initially targeted transactions between April 2023 and March 2026 across 14 central and northern districts. Given the extent of the fraud, the scope was extended to cover transactions dating back to the inception of the scheme.

To prevent further siphoning, the audit team has recommended strict financial monitoring, establishing clear standard operating procedures for block-level federations, and switching exclusively to direct benefit transfer for all scheme payments.