Gujarat Minister's Son, Nephew Arrested In Rs 71 Crore MGNREGA Scam Case
As per the FIR, DRDA officials found during field visits that contractors were paid for roads that were never built but falsely shown as completed to claim the payments
In a shocking development in Vadodara, Gujarat police have arrested Kiran Khabad, the younger son of Bachubhai Khabad, the state’s Minister of State for Panchayat and Agriculture, for alleged involvement in a Rs 71 crore MGNREGA scam. The scam involved contracted agencies receiving government payments despite failing to complete their work or supply goods, according to police sources.
Kiran, along with three others—including the minister’s nephew, Dilip Chauhan—has been detained. On Saturday, Kiran’s elder brother, Balwant Khabad, was also arrested in connection with the case. Additionally, police apprehended Darshan Patel, the former Taluka Development Officer (TDO) of Dahod district, bringing the total number of arrests to seven. The fraudulent activities involved the use of fake supply companies.
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A PTI report reveals that between 2021 and 2024, owners of 35 agencies, in collusion with government officials, allegedly misappropriated Rs 71 crore by submitting fake work completion certificates and other forged documents to secure payments under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.
Police investigations show that Kiran Khabad is linked to a supply firm named ‘Shri Raj Traders’, which received Rs 30.04 crore for MGNREGA projects without undergoing any tender process.
Simultaneously, Balwant Khabad is associated with ‘Shri Raj Construction Company’, which secured Rs 82 lakh. Together, the two brothers accounted for approximately 40 percent of the total scam amount. These firms frequently claimed to supply materials that never actually reached the intended sites.
Other individuals arrested include Parth Baria, owner of ‘NJ Enterprise’, and Rasik Rathwa, Deputy District Development Officer of Dahod. ‘NJ Enterprise’ was paid Rs 5.19 crore without any contract, making it a significant player in the scam.
Last month, the police registered an FIR for cheating, forgery, and breach of trust against unidentified individuals, including government employees, following the District Rural Development Agency’s (DRDA) discovery of the Rs 71 crore scam.
According to the FIR, DRDA officials, during field inspections, found that payments were made to contractors for roads that were never constructed but were falsely reported as completed to claim payments.
The work involved constructing roads, check walls, and stone bunds in two talukas of Dahod between January 2021 and December 2024.
Police further stated that payments were made to agencies that were either ineligible to supply materials or had not participated in the tender process.
The DRDA’s in-depth investigation uncovered 32 fake firms involved in supplying MGNREGA materials without following the bidding procedure. These fraudulent activities were concentrated in Devgarh Baria and Dhanpur talukas, with many instances of roads being built only on paper.
Dilip Chauhan, the Assistant Programme Officer (APO) of MGNREGA in Devgarh Baria, is considered the chief conspirator in the scam. Rasik Rathwa, the development officer of Dhanpur taluka at the time, reportedly collaborated in executing supply contracts for the Khabad brothers’ fake companies and facilitated payments by circumventing regulations.
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