Guj minister's son held for ties to company that swindled Rs 71 crore MGNREGS funds

VADODARA: Police in Gujarat Saturday arrested the elder son of minister of state for panchayats Bachu Khabad in connection with an alleged Rs 71 crore scam tied to MGNREGS in Dahod district. Balwant Khabad was taken into custody near Bathwada toll plaza after weeks of evading arrest.

Police alleged that he was linked to Shri Raj Construction Co, which received payments for supplying materials for Nrega projects despite not qualifying through bidding. His younger brother Kiran Khabad, connected to Shri Raj Traders, remains at large. Both firms received funds without securing contracts, police added.

The scam, unearthed in April by Dahod’s district rural development authority (DRDA), involved 32 firms supplying materials in Devgadh Baria and Dhanpur talukas. None had emerged as lowest bidders, a requirement under procurement rules. DRDA’s inquiry revealed several projects were either never initiated or inflated, yet payments were cleared.

Khabad, an OBC heavyweight of BJP and a four-term MLA, has not responded publicly to his son’s arrest. Balwant and Kiran had filed anticipatory bail applications in Dahod court but later withdrew them.

Balwant and co-accused Darshit Patel, a taluka development officer currently posted in Kheda, were produced in Dahod court and remanded in police custody for five days. Patel was earlier posted in Devgadh Baria, one of the talukas named in the investigation.

Seven people have been arrested so far in the scam, which came to light following multiple representations to DRDA, including Congress legislators. Leader of opposition Amit Chavda, of Congress, demanded formation of an SIT, alleging: “This scam could be much larger. Only an honest investigation can uncover full details.”