The Maharashtra State Council for Examinations (MSCE), an autonomous exam-conducting body of the government which has its headquarters in Pune, has been conducting the scholarship exams on a statewide basis in February every year. The idea is to foster a spirit of competitive exam writing among young students with specific focus on their ability to solve mathematics and intelligent quotient problems, besides languages and general knowledge.

As of now, the government provides an annual grant of Rs 750 per middle school scholarship holder and Rs 1,000 per high school scholarship holder. Against 15,536 sanctioned scholarship units, 21,686 students had qualified for middle and high school scholarships in the February 2008 exams. In all, 11.87 lakh students had appeared for the middle school and another 7.23 lakh students wrote the high school scholarship exams this year across the state.

The instant review stems from the clamour raised earlier this year by residents of Thane district on the grounds that they were not sanctioned adequate number of scholarship units in proportion to the district's student population. The issue even figured in the state legislature in April, when the education minister had assured the State Assembly of corrective action.