Gujarat Minister’s Son Kiran Khabad Re-Arrested in ₹71 Crore MGNREGA Scam
Dahod, Gujarat | May 31, 2025 — The corruption scandal surrounding the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in Gujarat deepened on Thursday night as Kiran Khabad, the son of Gujarat Minister of State for Panchayat and Agriculture Bachubhai Khabad, was re-arrested immediately after being released on bail in connection with the ₹71 crore scam.
Kiran Khabad had been arrested two weeks ago in a case related to large-scale misappropriation of government funds under the flagship rural employment scheme. After being granted bail, he was taken into custody again by Dahod ‘B’ Division Police in a fresh First Information Report (FIR) linked to the same scam.
Fresh FIR Alleges New Fraud in Lavaria Village
According to Deputy Superintendent of Police Jagdishsinh Bhandari, the new case involves fraudulent payments amounting to ₹18.41 lakh made to Kiran and other agency owners for incomplete MGNREGA work in Lavaria village, Dahod district.
“The payments were released by the government despite the fact that the work was either incomplete or not executed at all. Forged documents were used to claim the funds,” Bhandari stated.
The FIR accuses Kiran of receiving payments through fraudulent completion certificates, part of a broader network of agencies and government officials manipulating MGNREGA records.
₹71 Crore Scam: Bogus Bills and Forged Certificates
The broader scam, first exposed in April 2025 by the District Rural Development Agency (DRDA) in Dahod, involved an estimated ₹71 crore siphoned off by multiple contractors and officials.
Kiran Khabad and his brother Balvant Khabad — both proprietors of contractor agencies — were initially booked for:
- Cheating
- Forgery
- Criminal breach of trust
These agencies were awarded MGNREGA projects between 2021 and 2024 in Devgadh Baria and Dhanpur talukas of Dahod. However, police say that no actual work was done, nor were materials supplied, despite the submission of false work completion reports.
Key Allegations:
- Forged documents and fake certificates submitted.
- Ghost projects marked as complete.
- Collusion suspected between contractors and government officials.
Police suspect that multiple rural development officials may have knowingly approved payments, a claim that has triggered internal audits across several departments.
Political Fallout and Public Reaction
The case has drawn significant attention due to Kiran Khabad’s political lineage. His father, Bachubhai Khabad, is a BJP minister in the Gujarat government and represents Devgadh Baria constituency.
While the senior Khabad has distanced himself from the controversy, the re-arrest of his son has raised serious concerns about nepotism, corruption, and lack of oversight in public welfare schemes.
The opposition, particularly the Congress and Aam Aadmi Party (AAP), has demanded a judicial inquiry, claiming that the MGNREGA scam is just the tip of the iceberg.
“The MGNREGA scam exposes the rot within the state’s governance system. People’s money meant for employment and development has been looted,” said a local Congress leader.
What’s Next in the Investigation?
The Economic Offences Wing (EOW) and Anti-Corruption Bureau (ACB) are reportedly coordinating with Dahod police to expand the probe.
Authorities are:
- Reviewing all MGNREGA project clearances across Dahod from 2021–2024.
- Summoning officials from DRDA and Panchayat departments.
- Examining bank transactions and contractor records for signs of money laundering.
More arrests are likely as the case unfolds, with additional FIRs expected against complicit government employees.