Archive · 29 Dec 2025
Madhya Pradesh Housing Scheme Faces Corruption Allegations
The Pradhan Mantri Awas Yojana (Urban) is a government scheme to provide houses for poor families.
In Madhya Pradesh, many projects under this scheme are facing problems.
In Katni, houses promised in 2017 are still not built, and people who paid money for them are not getting refunds.
There are allegations of corruption, like overpaying contractors and giving new contracts to the same company.
In Bhopal, people are struggling to pay loans and rent because their houses are not ready.
In Satna, some rich people are getting houses while the poor are left out.
The government is investigating these issues, but the contractors deny any wrongdoing.
This shows that the scheme, which was meant to help the poor, is not working well in some places.
Hundreds of beneficiaries in Katni are without homes or refunds eight years after the project was sanctioned under the Pradhan Mantri Awas Yojana (Urban).
Allegations of irregularities in land valuation, tendering, and payments have been raised, with a new contract awarded to a partner company of the original contractor.
Beneficiaries in Bhopal are struggling with loan payments and rent as their houses remain incomplete six years after sanctioning.
In Satna, government records show irregularities such as thatched huts being listed as 'pucca' houses and the poor being excluded from the scheme.
The matter is under investigation by the Economic Offences Wing and local administration, with the contractor denying all allegations.
- Who
- Beneficiaries of the Pradhan Mantri Awas Yojana (Urban) in Madhya Pradesh, including Rani Ben, Mamta Ben, Rinki Nanda, and Nitesh Vyas
- What
- Allegations of corruption, negligence, and favouritism in the implementation of the housing scheme
- When
- Projects sanctioned in 2017 and 2018, ongoing issues as of 2025
- Where
- Katni, Bhopal, and Satna districts in Madhya Pradesh
- Why
- Alleged irregularities in land valuation, tendering processes, and payments, leading to delays and unfinished projects
- Scheme Name
- Pradhan Mantri Awas Yojana (Urban)
- Project Location
- Katni, Bhopal, Satna, Madhya Pradesh
- Project Cost
- Rs 105 crore (Katni), Rs 26 crore (new contract)
- Beneficiaries Affected
- Hundreds in Katni, multiple in Bhopal and Satna
- Allegations
- Irregularities in land valuation, tendering, and payments
- Investigation Status
- Ongoing by Economic Offences Wing and local administration
- Contractor's Response
- Denies all allegations, claims to be fixing stalled project