Large-scale irregularities have surfaced in the implementation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) across several districts of Bundelkhand, where crop insurance was allegedly obtained for land far exceeding the actual geographical area of villages. Investigations and field-level verification indicate that in multiple villages, insurance coverage was extended to land three to four times larger than the officially recorded village area, resulting in wrongful claims worth crores of rupees.
The alleged fraud appears to have been running for several years. Farmers claim that such manipulation could not have occurred without the involvement of insurance companies, revenue department officials and local middlemen. In some instances, insurance claims were even processed for land located in industrial zones where farming activity has ceased long ago.
Ground Verification Reveals Systemic Manipulation
A ground-level probe by local correspondents uncovered widespread violations of basic verification norms. Revenue records were routinely ignored, village boundaries were not cross-checked, and land-use classifications were bypassed while approving insurance policies.
In several cases, multiple farmers claimed insurance on the same parcel of land. In others, insurance was sanctioned for land that did not exist as cultivable farmland in official records.
Luhari Village Highlights Scale of Fraud
Luhari gram sabha in Mahoba district has emerged as a glaring example. As per official records, the total geographical area of the village is 747.364 hectares. However, during the Kharif 2024 season, 396 farmers insured crops spread over 1,138 hectares—well beyond the village’s total area.
Claims worth around ₹1.35 crore were paid under individual loss claims, while an additional ₹47 lakh was disbursed based on crop-cutting experiments.
The irregularities worsened in Kharif 2025, when 686 farmers insured crops over 2,880.06 hectares—nearly four times the village’s actual area. Following exposure of these discrepancies, insurance payouts for the season have been temporarily stopped.
Farmers Allege Official Collusion
Farmers insist the fraud reflects systemic collusion rather than clerical error. Ram Samujh, a farmer from Luhari, said he obtained gram sabha land records through the Right to Information Act and found massive discrepancies.
“How can insurance be taken on land that does not even exist?” he asked, pointing to documents showing insured acreage far beyond recorded limits.
Arvind Rajput, a farmer from the Mahua region, cited Bhatewarakala village, where insurance was taken on double the village area in Kharif 2024. In Kharif 2025, coverage allegedly rose to four times the actual area.
Industrial and Non-Agricultural Land Also Insured
Ajit, a farmer from Jhansi district, alleged that land converted into industrial zones was also insured under PMFBY. Despite no cultivation for years, claims were allegedly processed in the names of individuals.
Other farmers, including Madan Mohan Rajput, said the practice has continued unchecked across multiple seasons, exposing serious gaps in monitoring and accountability.
Two Major Mahoba Cases
Bhatewarakala village (Charkhari)
Total area: 1,129.377 hectares
Kharif 2024: 499 farmers insured 1,534.770 hectares; claims of ₹78 lakh paid
Kharif 2025: 673 farmers insured 3,171.68 hectares—over 2,000 hectares more than actual area
Samiriya village (Panwadi, Lodhipura)
Total area: 345.64 hectares
Kharif 2024: 147 farmers insured 383.53 hectares; claims of ₹1.19 crore
Kharif 2025: Insurance coverage jumped to 1,524.74 hectares—nearly five times the recorded area
Questions Over Oversight
Farmers argue that despite repeated discrepancies between revenue records and insurance data, no strict action has been taken against responsible officials or insurance companies.
They warn that unless a comprehensive investigation is ordered and accountability fixed, public trust in government welfare schemes—particularly those meant for farmers—will continue to erode.
