The Comptroller and Auditor General (CAG) of India released a comprehensive audit that exposes a massive fraud involving six so‑called “ghost hostels” that collectively absorbed Rs 1.62 crore of state funds over four years. Four of these institutions are in Jalna district, one each in Buldhana and Latur, and all were found to be completely non‑operational.

Audit Findings

One of the most striking cases highlighted in the report is the Modikhan Hostel in Jalna. Official records claimed the hostel accommodated 38 students under the supervision of a designated official, yet auditors discovered a dilapidated, locked building with no signs of habitation. Despite this, the state continued to disburse Rs 18 lakh in honorariums to the phantom entity over a four‑year span. A similar pattern emerged at a facility in Jafrabad, earmarked for 24 students, which was found abandoned and covered in dust.

Systemic Neglect Across the Board

The CAG’s physical inspection of 39 hostels – both government‑run and aided – revealed a broader crisis. Many functional hostels lacked basic amenities such as dining halls, libraries, computer labs, and reliable power backups. Safety and hygiene standards were subpar, with reports of poor‑quality food, insufficient clean drinking water, and inadequate sanitation. In districts like Nagpur and Jalna, the audit noted that rooms on upper floors were assigned to differently‑abled students, violating accessibility norms.

Technology and Oversight Gaps

Although the state invested in biometric attendance systems, only 46 out of 280 hostels had functional devices, rendering the oversight mechanism largely ineffective. This technological shortfall not only facilitated the fund diversion but also compromised student security and accountability.

Unspent Budgets Amidst the Crisis

The Social Justice and Special Assistance Department had allocated Rs 487 crore for government hostels in the 2023‑24 fiscal year, yet Rs 56.65 crore remained unspent. While the state spent over Rs 2,300 crore during the audit period, the lingering unutilised amount underscores a troubling lack of fiscal discipline.

Overall, the audit paints a grim picture of Maharashtra’s welfare infrastructure, exposing both financial leakage and the dire conditions endured by students in many hostels. The findings demand immediate corrective action: stricter audits, transparent fund tracking, and a renewed focus on delivering genuine educational support to the state’s most vulnerable learners.