Long-standing irregularities in Uttar Pradesh’s crop insurance schemes are now unravelling rapidly, with investigations exposing multiple layers of organised fraud across districts. During scrutiny of crop insurance policies issued for Kharif 2025, authorities have so far cancelled 1,05,361 policies found to be irregular or fraudulent. Following Mahoba and Jhansi, the investigation has now expanded to Lalitpur and Hamirpur, where similar patterns of manipulation have surfaced. With each new disclosure, officials concede that disciplinary and legal action against responsible officers is inevitable.
Preliminary findings by the Agriculture Department indicate that in Bundelkhand and other regions, insurance policies were issued on riverbeds, barren land, railway property, government land, and even land belonging to Members of Parliament. Using such ineligible land parcels, individuals allegedly siphoned off crores of rupees in insurance claims, exposing serious loopholes in the verification and monitoring mechanisms of the crop insurance framework.
Mahoba at the Centre of the Scam
The most glaring irregularities have emerged from Mahoba district, where suspicious insurance claims worth nearly ₹40 crore have been identified. In connection with these findings, 59 FIRs have been registered across various police stations in Mahoba, while 10 cases have been filed in neighbouring Jhansi.
Investigators say that forged and manipulated documents were routinely used to secure insurance coverage, even though the insured individuals had no ownership or cultivation rights over the land shown. Officials involved in the probe maintain that the scale and uniformity of the manipulation point to systemic collusion, rather than isolated administrative lapses.
Probe Expands to Hamirpur and Lalitpur
After detailed reports highlighted the scam, the Agriculture Department directed district magistrates across Uttar Pradesh to conduct a comprehensive verification of Kharif and Rabi 2025 crop insurance policies. Based on reports received so far, 1,05,361 policies have already been cancelled.
District-wise figures include:
- Mahoba: approximately 10,000 policies cancelled
- Jhansi: around 9,000 policies cancelled
- Other districts: between 150 and 1,000 cancellations each
Verification in Hamirpur and Lalitpur is still ongoing, and officials expect the number of cancellations to rise significantly once the exercise is completed.
Massive Financial Flows Under Scrutiny
The scale of financial transactions under the scheme further underscores the gravity of the scam.
Kharif 2024–25:
- 47.51 lakh farmers enrolled
- ₹1.25 crore collected as premiums
- ₹2.12 crore paid as claims
Kharif 2025–26:
- 55.95 lakh farmers paid ₹1.06 crore in premiums
- Claims still under process
Rabi 2024–25:
- 15.38 lakh farmers deposited ₹432.43 crore
- ₹276.10 crore paid to 3.58 lakh farmers
Rabi 2025–26:
- 20.92 lakh farmers deposited ₹537.64 crore
- ₹142.02 crore disbursed to 2.06 lakh farmers
Amid these enormous financial flows, the discovery of large numbers of fake and ineligible policies has severely eroded confidence in the transparency and integrity of the scheme.
Overhaul of Insurance Portal Proposed
The Pradhan Mantri Fasal Bima Yojana and the Restructured Weather-Based Crop Insurance Scheme are implemented through a central digital portal. With the rollout of the farmer registry and digitisation of land records, authorities now believe that long-standing technological gaps can be closed.
The Agriculture Department has sent a proposal to the central government recommending:
- Automatic linking of land records once a bank account is entered
- Instant classification of land as riverbed, barren, railway or government land
- Automated alerts to landowners before any insurance policy is approved in their name
Officials say these measures would drastically reduce the scope for fraud based on forged documents and false declarations.
Action Against Officials on the Cards
Director of Agricultural Statistics and Crop Insurance Sumita Singh confirmed that verification is continuing at the district level. She said that as soon as district magistrates submit reports, insurance companies are cancelling fraudulent policies listed on the NCIP portal.
Authorities have indicated that strict departmental and criminal action will be initiated not only against those who secured insurance fraudulently, but also against officials found complicit or negligent in the process. With investigations widening, officials do not rule out even larger revelations in the coming weeks.
The unfolding scandal has made it clear that restoring credibility to the crop insurance system will require not just technological fixes, but firm accountability across the administrative chain.
