
Prayagraj, August 19, 2025 – A major scam has rocked the Pradhan Mantri Awas Yojana (PMAY) in Prayagraj, where around 9,000 people used fake documents to grab housing funds meant for the poor, as per a Live Hindustan report. The scheme, launched in 2015 to help families build homes, offers 1.2 lakh rupees in three parts after checks. But in Prayagraj, this lifeline for the needy has been exploited by cheats, leaving real applicants empty-handed.
A recent survey exposed the fraud after the first payout last financial year. In Shankar Garh block, 3,127 recipients hadn’t started building, and locals confirmed they already had houses, some even two-story ones. Across the district, over 9,000 such cases were found, with fake papers claiming poverty. Chief Development Officer Harshika Singh said, “Those who used wrong documents and officers who approved them will face action.” Recovery notices are now being issued to reclaim the funds.
This isn’t new for Prayagraj. In March 2025, the urban PMAY-2.0 saw 1,062 fake project reports uploaded by officer Avinash Mishra’s team, leading to a police case. In May, over 2,000 defaulters – 1,507 rural, 504 urban – took money but built nothing, with empty plots in areas like Koraon, Meja, Jhalwa, and Salori. Back in 2022, 140 deceased people were listed as beneficiaries among 455 ineligible ones, showing long-standing issues.
Villagers also point to bribes, like in Bara block, where leaders allegedly demanded cash to release funds. Weak checks, like poor field visits and portal glitches, let fraud flourish. Some say politics plays a part, with approvals twisted for votes. “We wait years for help, but cheats take it,” said a Shankar Garh villager. The government is pushing audits, and UP is cracking down, with PMAY extended to 2028. But locals want public beneficiary lists and stricter ID checks to stop scams.
This 9,000-strong fraud highlights a broken system. Honest oversight is needed to ensure funds reach the truly poor, like daily wagers or families in shaky huts. As recovery begins, Prayagraj must act fast to restore faith in PMAY.