Delhi school students deprived of financial aid since 2016 |

An audit report from the Department of Education of the Municipal Corporation of Delhi (MCD) reveals that approximately 3.8 lakh students, accounting for 48.74% of the total, enrolled in MCD schools have not received financial assistance through various government schemes between the academic years 2016-2017 and 2022-2023. The report, dated November 11, 2023, points out that the Education Department of the Municipal Corporation of Delhi failed to disburse financial benefits due to the non-establishment of necessary bank accounts required for fund distribution under different schemes of the Delhi government.
The audit report was compiled by the Office of Chief Auditor within the MCD, a statutory body mandated to review the municipal body’s accounts on a monthly basis. Subsequently, the findings are submitted to the Standing Committee.
In the fiscal year 2016-2017, the MCD made a resolution to channel government scheme funds directly to students via Direct Benefit Transfer (DBT), as students were now maintaining individual bank accounts. Previously, these welfare funds were handed over to the school headmaster through ADE/DDE for disbursement in cash to students enrolled in MCD schools.
The audit report indicated that the MCD’s Education Department fell short of the set goal of achieving 100% Aadhaar card generation for opening bank accounts. The report revealed that out of the total student population exceeding seven lakh (7,86,205), only around four lakh (4,03,003) students successfully opened their bank accounts. Additionally, despite possessing Aadhaar cards, more than one lakh (1,36,599) students did not initiate the process of opening their bank accounts.
“Due to lack of proper mechanism and proper monitoring of data related to bank accounts of students registered in the school, the financial benefits given by the department under various schemes could not reach the students. Not receiving money for these schemes is a violation of the Right to Education Act, 2009,” the audit report noted. It also highlighted that the failure to distribute the policy amount constitutes a breach of the Right to Education Act of 2009.
Students in MCD schools receive financial assistance directly into their bank accounts through various government schemes with the intention of preventing malpractice and the misappropriation of funds. Th financial support includes cash subsidies for uniforms, school bags, scholarships, and stationery,
The audit report suggests MCD to initiate the process of opening bank accounts in the fiscal year 2023-2024, starting from April. The recommended deadline for the conclusion of the procedure is June 30.
The civic body has been asked to issue guidelines to all the schools that they should open bank accounts in advance and sign MOUs with the banks so that the process can be made easier.
The municipal body has been directed to provide instructions to all schools, urging them to proactively open bank accounts and establish Memorandums of Understanding (MOUs) with banks to streamline the process.

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