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Lucknow: The Prime Minister’s Crop Insurance Scheme (PMFBY) — aimed at protecting farmers from crop losses due to natural calamities — has been hit by a massive and organised fraud in Uttar Pradesh’s Bundelkhand region. Investigations have revealed that insurance policies were illegally issued not only on barren and non-agricultural land, but even on land owned by a sitting BJP Member of Parliament, exposing serious lapses in verification, monitoring and accountability.
One of the most shocking cases has emerged from Jhansi, where a crop insurance claim of ₹1.64 lakh was raised and withdrawn on land belonging to BJP MP Anurag Sharma, without his knowledge or consent. Official records show that a resident of Naugawan village, identified as Ritik Tiwari, insured the land under the central scheme and successfully received the payout.
The MP has said he does not know the individual involved and has expressed shock at the misuse of his land records, stating that the matter must be thoroughly investigated.
How Insurance Was Taken on an MP’s Land
The probe revealed that a policy issued by IFFCO Tokio General Insurance Company — policy number 0402092400715089278 — covered plot number 695, shown as measuring 2.48 hectares. However, land revenue records clearly state that the plot belongs to Anurag Sharma, resident of Civil Lines, Jhansi, and the actual land area is only 0.1580 hectares.
Despite this glaring mismatch, the insurance application was processed through a Common Service Centre (CSC). The claim amount was credited to a bank account located in Dakoar, Jalaun district, indicating manipulation of land records and possible collusion at the application and verification level.
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Rivers, Forests, Roads and Government Land Also Insured
As the investigation widened, officials uncovered that fraudsters insured land that cannot legally qualify for crop insurance, including:
- River land (plots 102 and 104 in village Simariya)
- Village roads (chak roads) such as plot number 129
- Ponds including plot number 519
- Forest land under Jaitpur forest range (plots 157, 158, 160 and 174)
- Railway land and government property
In many cases, claims were already withdrawn before the fraud surfaced. Reports have since been filed by lekhpals, forest officials and revenue authorities.
Multiple Policies Issued on a Single Land Record
Officials confirmed that in several instances, up to nine crop insurance policies were issued using a single khatauni (land record). In Jhansi and Mahoba districts alone, more than 6,000 suspicious bank accounts have been identified.
Many of these accounts had already received insurance payouts. Following the exposure, the accounts have been frozen, and recovery proceedings have been initiated.
20,000 Applications Filed Through CSCs
Agriculture department officials said nearly 20,000 insurance applications were submitted through Common Service Centres. While actual crop loss during the kharif season — particularly for arhar, urad, moong and groundnut — was assessed at around ₹150 crore, fraudsters began exploiting the scheme well before official claim verification was completed.
Investigators believe CSC operators played a critical role in facilitating bulk fraudulent applications.
Demand for CBI Probe
Gulab Singh, president of the Jai Jawan Jai Kisan Association, alleged that IFFCO Tokio had earlier been linked to a multi-crore crop insurance scam in Mahoba, and similar patterns are now emerging in Jhansi and other districts.
He claimed the company operates in more than 20 districts across Uttar Pradesh and demanded that the entire matter be handed over to the Central Bureau of Investigation (CBI) for a comprehensive probe.
Administration Swings into Action
Following media reports, the state agriculture department and district administrations have moved swiftly.
- Principal Secretary (Agriculture) Ravindra Kumar has directed all district magistrates to re-verify rabi crop insurance policies
- Claims will be released only after physical and revenue-record verification
- Jhansi DM Mridul Chaudhary said a special committee is being constituted to examine both kharif and rabi claims, on the lines of the Mahoba investigation
Officials said strict action will be taken against CSC operators, beneficiaries, and officials found involved.
Systemic Failure Exposed
The episode has exposed deep structural loopholes in the crop insurance framework, particularly the lack of real-time integration between land records, satellite imagery, and insurance portals. It has also raised serious concerns about misuse of welfare schemes through digital manipulation.
Authorities said the investigation is ongoing and further revelations are expected.
