Absentee students, fraudulent documents, non-existent centres – these are among the glaring flaws uncovered in the execution of Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the flagship training initiative of the Ministry of Skill Development and Entrepreneurship (MSDE)
Launched in 2015, the program has trained approximately 1.64 crore youth until June 2025, with Rs 1,538 crore set up for 2024–2025.

There have been complaints about inflated bills, absentee students, fraudulent documentation, and nonexistent Training Partners (TPs) and Training Centres (TCs) since the program's upgrade (PMKVY 4.0) began in 2022. Training centres are where training is provided, training partners are organisations or individulas who administer these centres.
All state principal secretaries, directors of state missions, and regional directorates received a letter from the Ministry on October 30 informing them of the actions taken against individuals who were "non adhering with the schemes norms."
According to the Ministry's message, 178 TPs and TCs have been placed on a blacklist by the Ministry and the National Skill Development Corporation (NSDC), which carries out the program, after "continuously monitoring implementation" and reviewing inspection reports.

Significantly, the Ministry has stated that recovery of money granted to the TPs and TCs has commenced and “legal action” has been initiated “against those who are in high level of penalty.”
Numerous FIRs had been filed against the defaulting TPs, as reported by The Indian Express on September 22, 2025. They were accused of manipulating attendance records to include pupils who were absent from training facilities, among other things.
"Considering the discrepancies observed in the centres, it is requested to ensure that appropriate action may be taken while examining or considering any proposals submitted under any Government skilling scheme," the Ministry instructed all State and mission heads in charge of PMKVY in its comprehensive letter on the blacklisting of TPs and TCs.

Uttar Pradesh has the most TPs and TCs on the black list (59), followed by Delhi (25), Madhya Pradesh (24), and Rajasthan (20). The Ministry has blacklisted one TP and one TC in a number of states, including Jammu & Kashmir, Maharashtra, Chhattisgarh, Mizoram, Telangana, and Tamil Nadu.
In 122 of the 178 cases, the identification of the TP was different from that of the TC; in 56 cases, the identity of the TP and TC is comparable.
Despite multiple mails, the spokesman of NSDC did not reply to questions given by The Indian Express on the blacklisting process and amounts of recovery of monies.

In response to an application submitted by The Indian Express under the Right To Information (RTI) Act, the NSDC declined to provide any information about defaulting training centres, citing "confidentiality" and "ongoing investigations."
According to a press release released by the government in July 2025 regarding PMKVY 4.0 allocations (Rs 1,538 for 2024–2025), "training is being imparted in accredited and affiliated Training Centres (TCs), monitoring of TCs through physical and virtual mode." Non-compliant TCs are subject to legal action, including cash recovery, suspension, blacklisting, and filing a formal complaint.
Several directors of the Regional Directorate of Skill Development and Entrepreneurship (RDSDE) in the eighteen states where the blacklisting occurred were contacted by The Indian Express.

Many acknowledged that all training activities in the defaulting TCs had been halted and reported receiving the blacklist for the first time.
A director described how "backend" blacklisting was carried out after FIRs were filed against half of the partners/centers and the local NSDC unit conducted monitoring.
One director stated: "In our district, almost all PMKVY training has come to a standstill." Additionally, since NSDC is in charge of it, we do not have information on the inspections or the next steps.
The most recent controversy that has plagued the NSDC is the blacklisting of a significant number of its TPs and TCs under the PMKVY program.

The NSDC announced the dismissal of its CEO, Ved Mani Tewari, in a "public notice" in May of this year.
Following Tewari's departure, the MSDE Ministry filed a police case in August of this year against two individuals it had personally chosen to help the company recover from its issue. The complaint had claimed that "they might run away with government money/property of NSDC."