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Gujarat Minister Bachubhai Khabad’s son, Balvant Khabad, was arrested on Saturday (May 17, 2025) for his alleged involvement in a ₹71 crore MGNREGA scam where some contracted agencies received payments from the government without finishing work or supplying goods, police said.

Police also arrested the then Taluka Development Officer (TDO) Darshan Patel in Dahod district, taking the number of persons held so far to seven, an officer said on Saturday.

Mr. Bachubhai Khabad, who represents the Devgadhbariya constituency, is a Minister of State for Panchayat and Agriculture.

The alleged scam involved owners of 35 agencies in connivance with government officials siphoning off ₹71 crore between 2021 and 2024 by producing bogus work completion certificates and other evidence to get the payment under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.

A police officer said Mr. Balvant Khabad owns one of these agencies, accused of committing fraud in MGNREGA works in areas under Devgadh Baria and Dhanpur talukas of tribal-dominated Dahod district.

“Dahod Police have arrested Bachubhai Khabad’s son Balvant Khabad and the then TDO Darshan Patel in connection with the MGNREGA scam in the district. We had arrested five persons earlier,” said Deputy Superintendent of Police and Investigation Officer Jagdishsinh Bhandari.

Police last month registered an FIR on charges of cheating, forgery, and breach of trust against unidentified persons, including government employees, after the District Rural Development Agency (DRDA) unearthed the scam amounting to ₹71 crore.

During field visits, RDA officials found that payments were made to the contractors for those roads not laid but shown as completed on the paper to receive the payment, the FIR said.

The assigned work includes constructing roads, check walls, and stone bunds in two talukas of Dahod between January 2021 and December 2024.

Police said payments were also made to agencies ineligible for supplying material or those who had not participated in the tendering process.

Further investigation is underway.