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NSDC Fires Back: Employees Face Scrutiny Over Skills Scheme Failures
23 Jun
Summary
- NSDC issued show cause notices to around 20 employees over PMKVY irregularities.
- CAG audit found fake bank accounts, duplicate candidates, and non-payment issues.
- Employees face charges of negligence, non-compliance, and data integrity compromise.
The National Skill Development Corporation (NSDC) has initiated disciplinary action against approximately 20 current and former employees. This follows a critical audit by the Comptroller & Auditor General (CAG) that identified numerous irregularities in the implementation of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme. The audit, covering the period from 2015 to 2022, highlighted issues such as fake beneficiary bank accounts, duplicated candidate data, and unpaid training partners.
Show cause notices have been issued, detailing charges of negligence, non-compliance with guidelines, and compromise of data integrity. These allegations include failure to match job roles to market demand, inadequate verification of training centers, and ensuring Aadhaar-based attendance. Employees have 15 days to respond, with potential referral to investigating agencies if financial misconduct is found. NSDC's CEO stated that corrective measures are being taken, emphasizing due process and principles of natural justice.
This action follows previous internal turmoil, including the abrupt removal of a former CEO in May 2025 and a police complaint filed in August 2025 regarding alleged misappropriation. The CAG report, tabled in Parliament in December 2025, also criticized the coordination between central and state departments and described NSDC's monitoring mechanisms as unreliable, prompting the Ministry to acknowledge the audit's role in strengthening the scheme.
