The Maharashtra government announced a one-time waiver of ₹4,500 to ₹5,000 crore [1] disbursed to ineligible beneficiaries of the Ladki Bahin welfare scheme.
The decision prevents the state from demanding repayments from millions of citizens, avoiding a massive administrative recovery effort that could have sparked public discontent.
A government verification drive identified between 25 lakh and 30 lakh [1, 2] women who did not meet the criteria for the welfare program. Despite the ineligibility, Chief Minister Devendra Fadnavis and the state administration decided to waive the recovery of the funds [1, 2].
While some reports cite the total waived amount as ₹5,000 crore [2], others provide a range starting at ₹4,500 crore [1]. The scale of the error reflects the challenges of distributing welfare benefits to a large population, a process that occasionally leads to significant leakage.
Further discrepancies in the disbursement process emerged during the audit. The government found that ₹24.24 crore [3] was mistakenly paid to 12,431 men, despite the scheme being specifically designed for women [3].
The Ladki Bahin scheme is a central pillar of the state's social welfare strategy. By opting for a waiver rather than recovery, the government has effectively absorbed the cost of the administrative errors to maintain the program's public image.
“Maharashtra waives ₹4,500 to ₹5,000 crore disbursed to ineligible beneficiaries.”
The waiver suggests a political calculation by the Maharashtra government to prioritize social stability and voter goodwill over fiscal recovery. Attempting to claw back funds from up to 30 lakh individuals would likely have been an administrative impossibility and a political liability, particularly for a flagship welfare initiative.
