Officials verify agricultural land records during an investigation into a crop insurance scam under PMFBY in Uttar Pradesh.

Centre Takes Tough Stand on Crop Insurance Scam: Agriculture Ministry Seeks Detailed Report, Action Against Officials in Several UP Districts Likely

The420 Correspondent
5 Min Read

Lucknow: The exposure of a multi-crore scam under the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme in Uttar Pradesh has prompted the Union government to adopt a hardline approach. The Ministry of Agriculture and Farmers’ Welfare has sought a detailed report on the entire episode, including a status update on actions taken so far. The move clearly indicates that major disciplinary action against officials and employees of the Agriculture and Revenue departments is on the cards.

According to sources, after irregularities were first unearthed in Mahoba and Jhansi, the scope of the investigation widened, bringing to light serious anomalies in crop insurance claims across districts such as Mathura, Farrukhabad, Jalaun and Fatehpur. The Centre has now asked the state government to clarify at what level officials failed in preventing the fraud and how the verification mechanisms collapsed.

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Departments on Edge After Report Sought

A senior official from the Agriculture Department said the Ministry has demanded a point-by-point report covering the crop insurance process, findings of the investigation, arrests made so far, and administrative action initiated. The Ministry has also questioned why officials responsible for land verification, crop inspection and record matching failed to discharge their duties effectively.

Following the Centre’s directive, panic has gripped both the Agriculture and Revenue departments in the state. In several districts, officials are reportedly trying to evade accountability, with blame being shifted between departments.

Strict Instructions Issued to District Magistrates

While the District Magistrate of Mahoba has already submitted a detailed report to the state government, reports from other districts are still pending. Consequently, District Magistrates of Jhansi, Jalaun, Farrukhabad, Mathura and other affected districts have been directed to submit their investigation reports without delay.

Sources indicate that officials and employees whose roles are found to be questionable may face not only departmental proceedings but also criminal action, depending on the gravity of lapses identified in the reports.

Insurance Companies Under Scanner

The investigation has revealed that the scam was not limited to bureaucratic negligence alone. The role of insurance companies has also come under serious scrutiny. During a video conference held two days ago, officials of the Union Agriculture Ministry reviewed the matter and expressed dissatisfaction over the delay in registering FIRs against insurance companies.

As the probe progressed, clear evidence of collusion between insurance company representatives, middlemen and beneficiaries emerged in several districts. Farmers questioned during the inquiry stated that company-linked agents lured them with assurances and later visited their homes to recover money once insurance claims were credited to their accounts.

Insurance Claims on Rivers, Railway Tracks and Barren Land

Investigators found that in Bundelkhand and other regions, fraudulent crop insurance was obtained by showing rivers, railway lines, ponds, barren land and government property as cultivable land. Fake documents were used to process and approve insurance claims.

One of the most striking revelations was that insurance claims were taken on land belonging to Jhansi MP Anurag Sharma by unrelated individuals, further highlighting the scale of manipulation in the system.

Arrests and Expanding Probe

So far, more than 20 people have been arrested in Mahoba, while FIRs have been registered against 10 individuals in Jhansi. Following the exposure of the scam, three-member district-level committees have been constituted in every tehsil to conduct field-level verification.

Investigations have also been intensified in Jalaun, Fatehpur, Farrukhabad, Mathura and several other districts, where similar complaints have surfaced.

The Centre’s stance is unequivocal—corruption in crop insurance schemes will not be tolerated under any circumstances. All eyes are now on the findings of the consolidated reports and the extent to which accountability is fixed on officials and stringent action is taken against errant insurance companies.

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