MADURAI: A steady decline in fund allocation for welfare schemes implemented by the Tamil Nadu Adi Dravidar Housing and Development Corporation Ltd (TAHDCO) across seven southern districts over the past few years was revealed through RTI data filed by activist C Karthick.
The data also showed that three districts—Theni, Tirunelveli and Tenkasi—failed to fully utilise the funds allocated for the schemes, returning Rs 4.62 crore during the period from 2020–21 to 2025–26, raising concerns over the implementation of schemes meant for socio-economic upliftment of Scheduled Caste communities.
According to the RTI reply, funds for various TAHDCO schemes, including the Entrepreneurship Scheme and the Chief Minister’s AARISE (CM-ARISE) Scheme, were allocated to Madurai, Theni, Dindigul, Ramanathapuram, Tirunelveli, Tenkasi and Sivaganga districts.
However, three districts—Theni, Tirunelveli and Tenkasi—returned unutilised funds amounting to Rs 4.62 crore between 2020–21 and 2025–26. Of this, Theni district alone returned Rs 22.45 lakh in 2020–21, Rs 41.21 lakh in 2022–23, Rs 1.19 crore in 2023–24, Rs 84.27 lakh in 2024–25 and Rs 16.20 lakh in 2025–26, totalling Rs 3.38 crore.
Speaking to TNIE, RTI activist C Karthick said, “It is surprising that TAHDCO has reduced fund allocation for schemes aimed at uplifting Scheduled Caste communities. While allocations of Rs 19.21 crore in 2020–21 and Rs 12.31 crore in 2021–22 can be overlooked due to the COVID-19 pandemic, the sharp drop from Rs 53.54 crore in 2022–23 to just Rs 17.57 crore in 2025–26 raises serious questions about whether the State government is actively monitoring welfare schemes for SC/ST communities. Adding to this concern, Theni district has returned unused funds of Rs 3.38 crore, the highest among all districts.”
Explaining the reasons for returning funds, an official from TAHDCO in Theni said that in several cases, applicants who initially had a good CIBIL score later defaulted on other loans during the processing period, leading banks to reject their applications.
In some instances, applicants were found to have applied for loans under the Tamil Nadu Industrial Investment Corporation Ltd (TIIC), making them ineligible for TAHDCO entrepreneur loans.
He further said that some selected beneficiaries failed to make the mandatory initial contribution. “For example, if the loan amount is `10 lakh, the applicant must contribute Rs 50,000. Many applicants withdraw out of fear. Since subsidies and allocations are already processed, the funds cannot be diverted to other schemes, leaving no option but to return the money to the government,” the official said.
Managing Director of TAHDCO K S Kandasamy said he would review the fund allocations across all districts in consultation with officials and respond to the issues raised. Theni Collector Ranjeet Singh was unavailable for a comment.