NSDC Issues Show Cause Notices to 20 Staff Over Skill Scheme Irregularities

The National Skill Development Corporation (NSDC) has sent show cause notices to around 20 current and former employees over alleged irregularities in the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), a flagship skills training scheme. The notices, sent earlier this month, cite lapses flagged by the Comptroller and Auditor General (CAG) in an audit covering three phases of PMKVY from 2015 to 2022, with an outlay of Rs 14,450 crore.

The CAG report, tabled in Parliament in December 2025, found multiple irregularities, including fake bank account numbers linked to beneficiaries, duplication of identification details across candidates, and non-payment to training partners for 34 lakh candidates. It described NSDC's monitoring mechanisms as 'unreliable' and highlighted poor coordination between central and state departments.

The show cause notices, signed by the head of NSDC's legal department, list specific charges against each employee, including failure to match job role selection with market demand, failure to verify accreditation and documents, and failure to ensure Aadhaar-based attendance. The notices warn that cases may be referred to investigating agencies if financial misconduct or criminal culpability is detected.

Employees have been given 15 days to respond, with failure to reply considered an admission of the charges. The charges are described as 'gross negligence of duty' and 'willful non-compliance' with PMKVY 2.0 guidelines, the second phase introduced in December 2017.

NSDC CEO Arunkumar Pillai stated that the corporation has taken note of the CAG observations and initiated 'course-corrective and accountability measures' under new leadership. He said the show cause notices were issued as per applicable contractual terms and governance processes, and any further action would be based on the replies and principles of natural justice.

Some recipients of the notices, speaking on condition of anonymity, denied the charges. One former employee who left NSDC in 2016 questioned the legal basis for sending notices to staff who left long before the PMKVY 2.0 guidelines were drafted. Another former employee described the notice as 'nothing but harassment.'

PMKVY was launched in 2015 and has trained over 1.64 crore youth as of June 2025. The current phase, PMKVY 4.0, is ongoing. The Ministry of Skill Development and Entrepreneurship had earlier stated that the CAG audit had 'significantly strengthened' the scheme.