The National Skill Development Corporation (NSDC) has issued show-cause notices to around 20 serving and former employees over alleged irregularities in the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) flagged by the Comptroller and Auditor General (CAG), The Indian Express reported.
The development marks the latest in a series of internal crackdowns at the organisation.
According to the report, the notices, sent earlier this month, list several charges against each staffer, including failure to match candidates' job role selection to market demand, failure to verify accreditation and documents, and failure to ensure Aadhaar-based attendance.
The notices reportedly warn that cases could be referred to investigating agencies if financial misconduct or criminal culpability is established.
NSDC implements PMKVY on behalf of the Ministry of Skill Development and Entrepreneurship, and the scheme has trained over 1.64 crore youth since its 2015 launch, The Indian Express noted. The CAG's audit covered three phases of the scheme between 2015 and 2022, spanning an outlay of Rs 14,450 crore and a target of training 1.32 crore candidates, with PMKVY 4.0 currently ongoing.
The CAG's 94-page report, tabled in Parliament in December 2025, flagged fake bank account numbers, duplication of candidate identification details, and non-payment to training partners for 34 lakh candidates, according to the report.
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It also described coordination between Central and State departments as "not effective" and called NSDC's monitoring mechanisms "unreliable."
Employees have been given 15 days to respond, with non-response to be treated as admission of the charges, the outlet reported, citing notices it reviewed.
NSDC CEO Arunkumar Pillai told the publication that the organisation "has taken note of the CAG observations" and had initiated "due course-corrective and accountability measures," adding that comments on individual cases would be "premature" while the matter is under process.
Some recipients denied the charges, with one former employee telling The Indian Express they had left NSDC in 2016, before PMKVY 2.0 guidelines were drafted, while another called the notice "nothing but harassment," per the report.
The Indian Express noted that NSDC had removed its previous CEO, Ved Mani Tewari, in May 2025, and that the Ministry had filed a police complaint in August 2025 alleging misappropriation at the organisation.
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