Saturday, March 29, 2025
New Delhi | August 20, 2025 — The central government has launched its first large-scale exercise to identify and remove ineligible ration cardholders who have been availing benefits under the free foodgrain scheme. As many as 1.17 crore beneficiaries are set to be struck off the list, after government data revealed they do not qualify under the National Food Security Act (NFSA).
The Ministry of Food and Public Distribution cross-verified ration cardholder details with databases of the Income Tax Department, the Ministry of Road Transport, and the Ministry of Corporate Affairs. The findings revealed:
94.71 lakh cardholders are income tax payers,
17.51 lakh cardholders own four-wheelers, and
5.31 lakh cardholders are directors in registered companies.
Together, these account for nearly 1.17 crore ration cards falling under the “ineligible” category.
The Centre has now sent these lists to state governments and Union Territories, directing them to verify the information on the ground and delete such names from records by September 30, 2025. States have also been asked to add genuine beneficiaries from the waiting lists in their place.
A senior food ministry official told The Indian Express:
“The Centre has shared this data to help states remove ineligible and duplicate cardholders, so that ration benefits can reach the genuinely needy. Ultimately, it is the states’ responsibility to conduct the review and ensure only eligible households remain under NFSA.”
Currently, under NFSA, 19.17 crore ration cards have been issued across India, covering about 76.10 crore beneficiaries. However, the rules clearly state that government employees, families with annual income above ₹1 lakh, income tax payers, and households owning a four-wheeler are not eligible for free ration.
In a letter sent on July 8, 2025, Food Secretary Sanjeev Chopra informed states that the exercise was being undertaken to ensure foodgrain distribution reaches the right people. The ministry cross-referenced information from multiple agencies, including CBDT, CBIC, MCA, MoRTH, and PM-Kisan databases, to flag ineligible beneficiaries.
Chopra emphasized:
“Accurate databases will ensure genuine poor families receive their due and improve transparency in the Public Distribution System. The cleanup must be completed by September 30, 2025.”
This move follows an earlier announcement in Parliament that 1.34 crore fake or ineligible ration cards were cancelled between 2021 and 2023. At present, ration cardholders are entitled to completely free foodgrain under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).
