Summary
Parliament's Public Accounts Committee, chaired by Congress MP K.C. Venugopal, met on 15 October 2026 to examine CAG Report No. 36 of 2025 on pre-matric and post-matric scholarships for Scheduled Caste students. The audit found delayed payments to 40.75 lakh beneficiaries, more than 3.5 lakh who never received their scholarships, over 6,000 non-SC recipients and double, short and excess payments.
The Chief Secretaries of Uttar Pradesh, Karnataka, Punjab, Odisha, Bihar and Madhya Pradesh did not appear and the committee unanimously decided to move a privilege motion before the Lok Sabha Speaker. The Union government told the panel that implementation is the responsibility of States and Union Territories and the committee gave the Ministry of Social Justice and Empowerment one month to file an action taken report.
WHY IT MATTERS FOR UPSC & STATE PCS
On 15 October 2026, the Public Accounts Committee decided to move a privilege motion against the Chief Secretaries of six States for failing to appear before it on CAG findings about delays, exclusion and fraud markers in Scheduled Caste scholarship schemes. It is a rare attempt by a parliamentary committee to compel State executives to answer for a Centrally Sponsored Scheme.
Standard News
One Scheme, Two Governments, No One Answering Article
105(3) says the powers, privileges and immunities of each House of Parliament and its committees are those defined by law. Parliament has never passed that law, so the privileges remain uncodified. On 15 October 2026 the Public Accounts Committee relied on those uncodified powers in an unusual way: it decided to seek a privilege motion against the Chief Secretaries of six States who did not appear to explain why Scheduled Caste students were paid their scholarships late.
What the
audit found CAG Report No. 36 of 2025, tabled on 4 February 2026, examined pre-matric and post-matric scholarships for SC students:
- Delay: 40.75 lakh beneficiaries in 14 States were paid late, with delays of 1 to 90 months.
- Exclusion: more than 3.5 lakh eligible students received nothing.
- Leakage: over 6,000 non-SC persons were paid and over 5,700 payments were made without proper income-eligibility checks.
- Errors: there were double, short and excess payments.
The rule as written The Constitution separates audit along the lines of whose accounts are involved.
Under Article 151, CAG reports on Union accounts go to the President and then Parliament, while reports on State accounts go to the Governor and then the State legislature. State executives answer to their own Assemblies under Article 164(2). The PAC examines Union accounts.
The rule as practised A Centrally Sponsored Scheme mixes both levels.
The Union designs the Post-Matric Scholarship, pays 60 percent of its cost (90 percent in North-Eastern and Himalayan States) under a pattern set in the 2020-21 revamp and relies entirely on State machinery to verify students and pay them.
When the PAC questioned the Union, it was told delivery is the States' responsibility. When it summoned the States' senior officials, none of the six appeared. The Union government is answerable to Parliament for the money it spends, but not for State execution.
The States are answerable to their own legislatures for State execution, but not for the Union's scheme design. For students who were paid late or not at all, no single body is clearly answerable to the institution that has the audit findings in front of it.
Why the
privilege motion is a test Rule 222 lets a member raise a breach of privilege of the House or its committees, but only with the Speaker's consent. The Committee has decided to move the motion; whether it is admitted is for the Speaker.
Gemini's research found no comparable precedent of a privilege motion succeeding against several sitting Chief Secretaries for non-attendance. Because privileges are uncodified, it remains unsettled whether a parliamentary committee can compel State officers on matters that are partly the State's own.
Quick Facts
Key numbers & takeaways — revise these first
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The Public Accounts Committee examines the reports of the Comptroller and Auditor General of India on Union government accounts.
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K.C. Venugopal of the Congress chairs the Public Accounts Committee in 2026.
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CAG Report No. 36 of 2025 was tabled in Parliament on 4 February 2026.
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The report found 40.75 lakh SC scholarship beneficiaries in 14 States were paid late, with delays of 1 to 90 months.
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Over 3.5 lakh eligible beneficiaries did not receive their scholarships at all.
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Over 6,000 non-SC persons received SC scholarships and over 5,700 payments were made without proper income checks.
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The Post-Matric Scholarship for SCs follows a 60:40 Centre-State funding pattern, 90:10 for North-Eastern and Himalayan States, since its 2020-21 revamp.
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The parental income ceiling for the Post-Matric Scholarship is Rs 2.5 lakh a year.
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Rule 222 of the Lok Sabha Rules of Procedure allows a member to raise a question of privilege with the Speaker's consent.
Connect the dots for your UPSC preparation.
Standard news covers the event. Log in to read our comprehensive analysis and uncover the hidden constitutional, structural, and ethical dimensions of this topic:
How Article 151's split of audit reporting leaves Centrally Sponsored Schemes partly outside any single legislature's oversight.
Why the shift to Direct Benefit Transfer coincided with post-matric beneficiaries falling to 36.07 lakh against a target of 76.55 lakh.
The 2018 CAG audit that flagged delays of up to six years and what its recurrence says about the limits of audit without enforcement.
A way forward combining joint Centre-State accountability, fixed disbursement timelines and codification of committee powers.
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