Bhubaneswar: A draft audit report has flagged a major discrepancy in Odisha's construction workers' welfare system, finding that 2,487 workers who were recorded as dead under the state's Nirman Shramik Kalyan Yojana continued to receive subsidised foodgrains under the National Food Security Act (NFSA) and State Food Security Scheme (SFSS).

The audit found that death benefits had been paid to nominees of the workers even though the same beneficiaries subsequently authenticated their Aadhaar details to collect ration. In 753 cases, the audit identified multiple Aadhaar authentications after the workers had been officially recorded as dead.

According to the audit findings reported on the draft report, nominees in 753 cases received a total of Rs 15.10 crore as death compensation, while the corresponding beneficiaries continued to draw their ration quota. The report said the Aadhaar authentication indicated that the beneficiaries were physically present when the ration was collected, raising questions over the validity of the death records and the disbursement of death benefits.

The findings have raised concerns over gaps in verification and coordination between the databases maintained for construction workers' welfare benefits and the public distribution system.

Under the Nirman Shramik welfare framework, registered building and construction workers and their families are eligible for various benefits, including assistance for education, marriage, maternity, funeral expenses and death compensation. Families of deceased workers are also entitled to death benefits under the scheme.

The latest findings come against the backdrop of earlier irregularities reported in the disbursement of death benefits to construction workers in Odisha. In 2024, the state Labour Department ordered a special audit of the Rayagada district labour office following allegations of embezzlement of death benefits.

Labour Minister seeks verification

Odisha Labour Minister Ganesh Ram Singh Khuntia said the audit report would be examined and that he would discuss the matter with the Principal Secretary of the Labour Department.

He said that if corruption or wrongdoing is established, strict action would be taken against the officials responsible.

The latest audit findings are expected to be examined further to determine how workers recorded as deceased continued to authenticate their Aadhaar details and receive subsidised ration, and whether the discrepancies resulted from fraud, errors in beneficiary records or lapses in verification.