Balwant Khabad, son of Gujarat's Minister for Panchayat and Agriculture, Bachu Khabad, has been arrested for orchestrating large-scale embezzlement
DAHOD (Gujarat) — The All India Agricultural Workers Union (AIAWU) has demanded immediate and strict action against those involved in the massive ₹71 crore scam unearthed under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in Gujarat’s Dahod district.
In a shocking development, Balwant Khabad, son of Gujarat’s BJP Minister for Panchayat and Agriculture, Bachu Khabad, was arrested by the Dahod police for orchestrating large-scale embezzlement of MGNREGA funds.
According to the initial investigation, Balwant operated an agency that siphoned off public money by submitting fake bills for goods and services that were never delivered. Several contracts under MGNREGA were awarded to ineligible companies, violating bidding norms.
The scam, allegedly run through a fabricated network of non-existent infrastructure projects — including roads, bunds, and other public works — led to the misappropriation of funds intended for tribal employment. Investigators have arrested two MGNREGA accountants and three technical assistants so far. Balwant’s brother, Kiran Khabad, is reportedly also involved and is currently absconding.
This fraud is not an isolated incident but symptomatic of what is often projected as the “Gujarat Model”, said AIAWU President A Vijayaraghavan.
The blatant looting of employment funds intended for the rural poor, especially tribals, is a stark reflection of the BJP-led government’s priorities, where welfare is sacrificed at the altar of political patronage and corruption, he added.
“Given that the scam involves direct beneficiaries related to the current minister overseeing Panchayati Raj and Agriculture — the very ministry implementing MGNREGA — a fair and impartial probe is impossible under the current circumstances. It is unreasonable to believe that Balwant and Kiran Khabad could have carried out such an extensive operation without the tacit knowledge or influence of their father,” he said.
In the light of these allegations, Vijayaraghavan said, the Gujarat government should sack Minister Bachu Khabad to allow for an impartial investigation.
A judicially-supervised inquiry is needed to ensure accountability at all levels, including potential ministerial involvement, he added.
“This is not just a case of financial corruption — it is an attack on the constitutional rights of India’s most vulnerable citizens. Justice must not only be done but be seen to be done,” he said.
