The Congress-led Telangana government, headed by Chief Minister A. Revanth Reddy, has uncovered what it describes as one of the largest administrative scams in the state’s history — the alleged misuse of nearly ₹18,000 crore of public funds during the previous Bharat Rashtra Samithi (BRS) government under K. Chandrashekar Rao.
The irregularities came to light during the ongoing verification of government employees under the new Integrated Finance Management and Information System (IFMIS). The audit revealed a massive network of ghost employees, fake outsourcing contracts, and fictitious wage payments spanning government departments, corporations, universities, and local bodies.
The KCR government had earlier promised to eliminate all forms of contract and outsourcing employment, vowing transparency and regularization. However, the latest findings tell a different story. Official records show 4,93,820 employees listed as contract or outsourced staff, contradicting KCR’s earlier claims that such employment no longer existed.
Following Revanth Reddy’s department-wide data verification requiring Aadhaar, PF, and ESI details, only 2,74,844 employees were verified by the October 16 deadline. The remaining 2.18 lakh “employees” could not be traced, raising suspicions that a significant number were bogus beneficiaries who had drawn salaries for years without actually working.
Preliminary assessments indicate that at least one lakh ghost employees may have received illegal payments over the past decade, totaling around ₹18,000 crore. Senior officials revealed that even IAS and IPS officers, department heads, and politically connected individuals had included relatives and fictitious staff on payrolls.
The scale of the fraud is highlighted by cases like GHMC, which reported 21,000 outsourcing staff. After introducing a facial recognition attendance system, the number of actual staff dropped to around 15,000, exposing roughly 6,000 ghost employees. Similarly, in the General Administration Department (GAD), out of 1,600 temporary employees listed, only 764 were actually working.
With the data verification drive still underway, government sources suggest this may only be the tip of the iceberg. The Revanth Reddy administration is expected to initiate criminal investigations and financial recovery proceedings against those involved in what officials are calling a decade-long administrative fraud.
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