Wealthy individuals, particularly owners of expensive cars, are taking advantage of Kerala's pension system by claiming benefits intended for the needy
A recent audit by Kerala's Finance Department revealed a significant misuse of social security pensions in Kottakkal Municipality, Malappuram district, where individuals with substantial wealth, including BMW car owners, have fraudulently claimed welfare pensions intended for the economically needy. Many of these beneficiaries were found residing in large homes, over 2,000 square feet in size, equipped with air conditioning and other luxury amenities.
As an official quoted by PTI stated, "Some welfare pensioners reportedly live in houses equipped with luxuries such as air conditioners. There were also instances where spouses of government service pensioners were drawing welfare pensions." There were allegations of corruption and cooperation among local authorities in charge of the pension verification procedure after the audit revealed that 38 out of 42 pension beneficiaries were ineligible and one had died.
In response to these findings, Kerala Finance Minister K N Balagopal has ordered a thorough review of all social security pension recipients in Kottakkal Municipality. The Finance Minister has instructed the Local Self-Government Department to assist the municipality with the verification process. Additionally, a vigilance investigation has been ordered into the officials who added wealthy individuals to the beneficiary list. This includes those responsible for eligibility checks, revenue officers who issued income certificates, and those who approved the pensions, as reported by PTI.
The inquiry is part of a broader effort to address the increasing issue of government workers fraudulently collecting welfare benefits. An earlier investigation conducted by the Information Kerala Mission discovered that 1,458 government employees across the state were falsely claiming these pensions. This has caused the Finance Minister to emphasize that individuals responsible would face stern disciplinary action.
Balagopal emphasized the need to weed out ineligible beneficiaries from the pension system, specifically targeting individuals with annual incomes above Rs 1 lakh and government employees. He further stated, "It is wrong for government officials to receive welfare pensions. Legal action will be taken against such officials. Welfare pensions are meant for those who are eligible."
The Kerala government has established explicit rules for welfare pension eligibility which includes a yearly household income cap of Rs 1 lakh and prohibitions on owning large mansions or expensive cars. Now, the state is trying to revise the pension list so that only those who are actually in need are listed.