A government investigation has uncovered alleged irregularities in the disbursal of funds under the Centre’s Pradhan Mantri Awas Yojana-Gramin (PMAY-G) in Madurai, with Union government assistance reaching beneficiaries for houses that were never constructed, as reported in Times of India.
The Tamil Nadu government has suspended three revenue officials from Madurai after an inquiry found that officials, beneficiaries and neighbours had allegedly colluded to divert funds sanctioned for the construction of houses under the rural housing scheme. The officials allegedly used photographs of nearby houses to bypass the mandatory GPS-based verification process and facilitate the release of instalments.
Under PMAY-G, eligible beneficiaries are identified at the village level by district authorities. Officials generally prepare a list of 10 applicants after verifying their identity documents and land ownership records. Once a beneficiary is approved, financial assistance of ₹2.10 lakh is released in four instalments linked to different stages of construction – the basement, lintel, roof and completion of the house.
Before each instalment is released, the concerned revenue officials are required to verify that construction is taking place on the approved plot. The Block Development Officer (BDO) is required to use the secured PMAY-G application to inspect the construction site and upload photographs tagged with the location’s GPS coordinates. These photographs serve as proof of construction at each stage, following which the instalment is credited directly to the beneficiary’s bank account.
Complaint Triggers Probe In Madurai
The alleged irregularities came to light in Ponnamangalam village in Thirumangalam taluk, Madurai district, following a complaint by resident K. Manikandaraja to the vigilance department in October 2025.
Manikandaraja had alleged that PMAY-G funds had been claimed for houses that had not actually been constructed. His complaint was subsequently forwarded to the Madurai Collector, who ordered an inquiry under Revenue Department Assistant Director Veeraraghava Rao.
The inquiry examined 18 houses and found violations in nine cases.
According to the inquiry findings, eight of the 18 houses had not been constructed at all. In another case, the beneficiary had constructed a house on a plot carrying a survey number different from the site that had been approved under PMAY-G.
Investigators reportedly found that beneficiaries, neighbouring residents and officials had coordinated the transactions after the applications were approved.
Nearby Houses Used To Bypass GPS Verification
The investigation found that houses constructed by neighbours on plots in the same streets were allegedly photographed and uploaded against the records of PMAY-G beneficiaries whose sanctioned houses had not been built.
Because the neighbouring houses were located close to the approved beneficiary locations, the photographs were able to satisfy the application’s GPS verification requirement. The photographs were then used as evidence of construction at different stages, enabling successive instalments to be released.
After the money was credited to the approved beneficiaries’ bank accounts, the beneficiaries allegedly transferred the funds to the neighbours whose houses had actually been photographed during the verification process.
The findings indicate that the GPS verification mechanism, which was intended to prevent such irregularities by establishing the location of construction, was allegedly manipulated through the use of photographs of nearby properties.
₹21 Lakh Recovery Ordered From Officials
The matter subsequently reached the Madras High Court’s Madurai Bench after Manikandaraja approached the court, stating that he had received no update on his complaint despite submitting a reminder.
During the proceedings, the Madurai Collector informed the court that the departmental inquiry had confirmed irregularities in the implementation of PMAY-G in the village. The Collector also informed the court that disciplinary proceedings had been initiated and show-cause notices had been issued to the officials involved.
Government sources said three revenue officials had been directed to repay ₹21 lakh in connection with the irregularities.
The three officials were subsequently suspended by the Tamil Nadu government.
The case came before Justice B. Pugalendhi, who closed the petition on 28 July, after taking note of the action initiated by the authorities. The court also directed the government to proceed against all officials found to be involved in the irregularities.
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