For the first time, the central government has identified the ration card holders who are not eligible to get the benefit of free food grains scheme. The Food and Public Distribution Department matched the details of ration card holders with the database of government agencies like Income Tax Department, Ministry of Road Transport and Ministry of Corporate Affairs.
Investigation revealed that 94.71 lakh ration card holders are taxpayers, 17.51 lakhs are four-two-wheelers and 5.31 lakh company directors. Overall, about 1.17 crore card holders fall in the ineligible category.
The Food Department official said that this data has been transported to the block headquarters of the states, so that the beneficiaries will be able to investigate their positions at the local level.
The Center has instructed the states and union territories to verify the ground level and exclude ineligible ration card holders from the list by 30 September 2025. This step has been taken with the aim of benefiting the real needy.
Food Secretary Sanjeev Chopra sent a letter to all the states on 8 July 2025, saying, “Ensuring the purity of the database will benefit the real disadvantaged families and increase the transparency of the public distribution system.”
Income tax payers who earn income of Rs 1 lakh or more annually are not eligible for free ration scheme.
Four-wheeler owners have also been placed in ineligible category, so that only real disadvantaged families get benefits.
Directors of companies and high -income families have also been included in this list.
Thus, the effectiveness and transparency of the plan is being ensured by identifying ineligible ration card holders.
19.17 crore ration cards have been issued so far under the National Food Security Act (NFSA). A total of 76.10 crore beneficiaries are included under this scheme. According to the rules, government employees, income tax payers, four-wheelers and high-income families are not eligible for free ration.
Under the Pradhan Mantri Garib Kalyan Annan Yojana (PMGKAY), grains are being provided completely free to ration card holders. The Center told the Rajya Sabha in July 2025 that between 2021-23, 1.34 crore fake or ineligible ration cards have been canceled.
The central government believes that ineligible ration card holders and removing them from the list will make the public distribution system more transparent and justified. States will now have to do intensive verification at the local level so that the real needy can get benefits immediately.
The Food Secretary said, “This work will be completed by 30 September 2025. The active participation of the states will ensure the success of the scheme.”
This initiative of the Central Government is an important step to exclude ineligible ration card holders and deliver grains to real beneficiaries. Identification of ineligible ration card holders will not only save resources, but will also improve the lives of poor and deprived families. This step can be considered a historical step towards increasing transparency and accountability in the public distribution system.