Authorities in Uttar Pradesh's Farrukhabad district have uncovered a significant fraud scheme within a government crop insurance program, leading to criminal cases against 44 individuals. The scam involved the illegal transfer of approximately Rs 68 lakh in compensation meant for crop losses to farmers who did not own any land.
Probe Exposes Widespread Irregularities
The case came to light after the Deputy Director of Agriculture filed two separate First Information Reports (FIRs). The fraud pertains to the 2024 Rabi season, during which the private insurer HDFC Ergo had provided crop coverage for 8,849 farmers in the district. Following crop damage, the company disbursed a total of Rs 2.28 crore in claims to 232 farmers.
However, suspicions arose when several payouts of Rs 4 lakh each were made to individuals listed as landless farmers. District Magistrate Ashutosh Kumar Dwivedi ordered a detailed investigation into the landholdings of all farmers who received insurance compensation exceeding Rs 1 lakh.
Shocking Findings in Village Records
A team comprising the Naib Tehsildar, Kanungo, and the Agriculture Development Officer (ADO) conducted the probe. Their findings were startling. The investigation revealed that 35 farmers who received compensation did not possess any agricultural land at the locations mentioned in the official insurance claim records.
A particularly egregious example was found in the Balipatti Rani gram panchayat under Amritpur tehsil. Out of 15 farmers who received insurance payouts there, 14 were completely landless. This group alone fraudulently received Rs 24.89 lakh. In another instance, a farmer who owned only 0.026 hectare of land was paid Rs 2,57,160, a sum vastly disproportionate to the legitimate claim of Rs 2,228.
Legal Action Against Officials and Farmers
As a result of the investigation, police have booked a total of 44 people. The accused include:
- Nine bank managers allegedly involved in processing the fraudulent transactions.
- Three staff members of the crop insurance company.
- 32 farmers, of which 14 are confirmed to be landless.
The actions violate the core rules of the Prime Minister's Crop Insurance Scheme (PMCIS), which is designed to provide a safety net for genuine cultivators facing losses due to natural calamities. The scheme mandates that beneficiaries must have an insurable interest in the crop, typically through land ownership or tenant farming rights.
Broader Implications and Scheme Integrity
This case highlights critical loopholes in the verification and implementation process of a major central government welfare scheme. The fraud not only represents a direct financial loss but also undermines the scheme's objective of supporting India's agricultural community. It raises serious questions about the due diligence exercised by bank officials and insurance field staff during the enrollment and claim settlement processes.
The district administration has emphasized that the investigation is ongoing and more details may emerge. The incident serves as a stern warning against the misuse of public funds and indicates a tightening of scrutiny over agricultural subsidy and insurance disbursements in the state.
