Private school teachers received govt salaries for 23 years:Education Dept investigation found officials guilty; ₹15 crore recovery ordered from teachers and implicated authorities

In a shocking revelation, the Madhya Pradesh School Education Department has acknowledged a massive payroll irregularity, ordering the recovery of Rs 15 crore from a private school in Niwari district. The move follows a high-level investigation that found private school teachers were being paid as government employees for 23 years, including arrears and salary benefits. The case has prompted the Lokayukta to prepare for filing a formal complaint, marking a significant step toward accountability in the state’s education system. How the scam unfolded The irregularity came to light at Shastri Higher Secondary School in Neguwan, Niwari. Although a private institution, the teachers were receiving government salaries since 2002, enjoying benefits meant only for state-employed educators. While the issue exists in 54 other schools across the state, the department has so far issued recovery orders only for this particular school. Joint Director of Education, Mr. Mrityunjay Kumar, who led the investigation, told Bhaskar that his team examined only this school and submitted the report to the Lokayukta. Further action will be taken by the department and Lokayukta. Read the full report… Timeline of the irregularity 2002 – Private school under local authorities The issue traces back to a government order in 2002 that placed 54 old private schools under district and municipal authorities. Shastri Higher Secondary School, operating on government land, was not included under any local authority at the time. Legal disputes and High Court orders In 2005, the school’s operator, Rajendra Pathak, filed a petition in the High Court. In 2012, the court directed the formation of a screening committee to investigate. Delays in forming the committee led to a contempt petition, prompting the court in 2014 to instruct the then Collector to conduct the investigation. 2017 – School recommended under local authority The committee concluded that the school’s documentation was valid and recommended placing it under local authority jurisdiction. Based on this, the school issued contract appointments to all teachers. Subsequently, the school began portraying itself as a government institution. Collusion with officials led to payments According to the investigation, several education department officials facilitated the irregularity. An official order labeled the school as government-run, resulting in teachers receiving salaries from the state treasury, including arrears dating back to 2002. Some teachers reportedly received arrears of ₹10–15 lakh each. The scam was exposed after Rajendra Pathak, the school principal, was appointed as the District Education Officer (DEO) of Niwari on 31 March 2023. A confidential complaint highlighted that he was serving as a principal under the District Panchayat, not as a government employee. Departmental Response and Recovery orders Following the complaint, the Education Department verified the irregularity. On 3 April 2023, Deputy Secretary O.L. Mandloi issued an order confirming that Pathak was a District Panchayat employee, not a state education department officer. He was subsequently removed from the DEO post. The revelation raised questions about the government salaries, arrears, promotions, and 7th pay commission benefits received by Pathak and 56 other teachers at the school. Investigation findings After persistent media coverage and follow-up by Dainik Bhaskar, a high-level inquiry committee was formed. The investigation by Joint Director Mrityunjay Kumar found that official collusion enabled the scam, resulting in Rs 15,88,88,995 (over ₹15 crore) of irregular payments. Officials found Rajendra Pathak, former Block Development Officer R.D. Verma, N.C. Tiwari, S.P. Pandey, former District Panchayat CEO, D.E.O. S.N. Nikhra, and former District Education Officer B.L. Luharia responsible for the irregularities. Recovery of the total amount has now been recommended from these individuals. Why the issue remained unchecked This irregularity could have been detected earlier. Last year, the Niwari District Education Officer had recommended recovery from these “government teachers” and sent a report to the state education directorate in Bhopal. While the department temporarily stopped salaries, no criminal action was initiated, and the matter was shelved until media scrutiny brought it back into focus.