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Gujarat minister’s son on run arrested over MGNREGS irregularities
Gujarat minister Bachubhai Khabad’s son, Balvant Khabad, was arrested following a probe into fraudulent activities by contracted agencies that received government payments
Gujarat minister Bachubhai Khabad’s son, Balvant Khabad, has been arrested for his alleged involvement in irregularities worth ₹71 crore in the implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) scheme in Dahod, a police officer said.
The arrest followed a probe into fraudulent activities by contracted agencies that received government payments without completing work or supplying goods.
“Dahod Police have arrested Bachubhai Khabad’s son, Balvant Khabad, and the then TDO [Taluka development officer] Darshan Patel in connection with the MGNREGA scam in the district. We arrested five persons earlier,” said deputy police superintendent Jagdishsinh Bhandari on Saturday.
The irregularities were unearthed in MNREGA projects in Devgadh Baria and Dhanpur talukas of the tribal-dominated Dahod district. Authorities identified 35 government agencies for scrutiny. Seven people, including government officials, have been arrested so far in the case.
The irregularities came to light this year. The district rural development authority conducted an inquiry into the matter after representations about the irregularities.
A second police officer described the irregularities as a well-orchestrated fraud involving fictitious projects and forged documents. He added that the investigations were going on to uncover their full scope.
Between January 2021 and December 2024, 35 contracted agencies allegedly siphoned off ₹71 crore by producing fake work completion certificates and invoices.
Balvant Khabad owns one of these agencies, Shri Raj Construction. His brother, Kiran Khabad, who is linked to another firm, Shri Raj Traders, is absconding, police said.
The two firms received money even as they did not win the bids for the projects. Shri Raj Construction allegedly received approximately ₹82 lakh for the supply of goods between January 2021 and December 2024, according to the First Information Report filed in the case, a copy of which HT has seen. Kiran Khabad’s firm was allegedly paid nearly ₹30 crore.
Balwant and Kiran Khabad applied for anticipatory bail in a Dahod court but later withdrew their petitions. They were evading arrest before Balwant Khabad was caught.
Balwant Khabad and Patel were presented in a Dahod court and were remanded to police custody for five days. Police were investigating the involvement of more agencies and officials.
Minister Bachubhai Khabad was yet to comment on his son’s arrest.
Gujarat Congress raised concerns about the MGNREGS irregularities in Dahod during the Gujarat assembly session on March 5. Congress leader Amit Chavda raised the issue, alleging corruption worth over ₹100 crore. He demanded an investigation.
The state government said a Lokpal committee probe was going on, and action would follow its completion.
Chavda on Saturday slammed the ruling Bharatiya Janata Party (BJP) for its handling of the issue. He said the MGNREGS fraud was part of “widespread corruption” and criticised the government for allowing firms linked to the Khabad family to receive unchecked payments for years. He demanded a Special Investigation Team probe, alleging that the current investigation was insufficient and that “bigger names” could emerge with a deeper inquiry.
A Gujarat BJP spokesperson refused to comment on the matter.
