FGG Chief Writes to CM About Misuse of Dalita Bandhu Funds
He has called for a comprehensive evaluation to ensure accountability and transparency in the implementation of the programme.

Hyderabad: In a significant development, Forum for Good Governance (FGG) President M. Padmanabha Reddy has written to Chief Minister A. Revanth Reddy, raising serious concerns over the alleged misuse of funds under the Dalita Bandhu scheme. He has called for a comprehensive evaluation to ensure accountability and transparency in the implementation of the programme.
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₹10 Lakh per Beneficiary, But Where’s the Impact?
Padmanabha Reddy highlighted that the Dalita Bandhu scheme was designed to provide ₹10 lakh in financial assistance to Scheduled Caste families for the establishment of income-generating units, without the involvement of bank loans. Out of the total, ₹9.9 lakh is credited to the beneficiary’s account and ₹0.1 lakh goes to a common “Raksha Fund”.
However, FGG claims that the scheme — originally intended to empower Dalit families across 118 Assembly constituencies — has been plagued by irregularities since its inception.
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Allegations of Political Interference and Bribery
FGG has alleged that the selection process for beneficiaries was influenced by local MLAs and their supporters, with instances of bribes ranging from ₹2 to ₹3 lakh being collected from hopeful applicants. Reddy pointed out that training and field visits, which were mandated as part of the preparatory steps, were largely ignored before releasing funds.
Vasalamarri Case Study: A Pilot Gone Wrong?
The Dalita Bandhu scheme was first launched in Vasalamarri village of Turkapally mandal in saturation mode. FGG conducted a survey there and revealed that although 52 Dalit families were listed, 75 units were sanctioned. Some families reportedly received multiple units, with ₹6.5 crore deposited overall.
Disturbingly, many units were either non-functional or not generating the expected income. In several cases, tractors and transport vehicles provided under the scheme were sold off by beneficiaries within six months due to lack of proper guidance and training.
₹3,884 Crore Already Spent — FGG Demands Accountability
Reddy emphasized that the issues identified in Vasalamarri are likely prevalent across the state. With ₹3,884 crore already spent on Dalita Bandhu, he stressed the urgent need for a state-wide audit and accountability measures.
FGG accused the previous administration of using the scheme as a political tool for electoral gains, rather than genuine empowerment of Dalit communities. Padmanabha Reddy urged the government to identify those responsible for the misuse of taxpayer money and take corrective action.