A massive and organized fraud has been uncovered in the Prime Minister’s Crop Insurance Scheme (PMFBY) in Uttar Pradesh’s Bundelkhand region. The scheme, aimed at protecting farmers from crop losses due to natural calamities, has been exploited by fraudsters who have illegally issued insurance policies on barren and non-agricultural land, including land owned by a sitting BJP Member of Parliament, Anurag Sharma.
In one shocking case, a crop insurance claim of ₹1.64 lakh was raised and withdrawn on land belonging to Sharma without his knowledge or consent. The investigation revealed that the policy was issued by IFFCO Tokio General Insurance Company and was processed through a Common Service Centre (CSC). The claim amount was credited to a bank account in a different district, indicating manipulation of land records and possible collusion at the application and verification level.
The fraud is not limited to Sharma’s land, as officials have found that insurance policies were issued on river land, village roads, ponds, forest land, railway land, and government property. In many cases, claims were already withdrawn before the fraud surfaced. Reports have been filed by lekhpals, forest officials, and revenue authorities. Multiple policies were issued on a single land record, with up to nine crop insurance policies issued using a single khatauni (land record).
In Jhansi and Mahoba districts alone, more than 6,000 suspicious bank accounts have been identified, and many of these accounts had already received insurance payouts. Following the exposure, the accounts have been frozen, and recovery proceedings have been initiated. The agriculture department officials said nearly 20,000 insurance applications were submitted through Common Service Centres, and investigators believe CSC operators played a critical role in facilitating bulk fraudulent applications.
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. The state agriculture department and district administrations have moved swiftly, with the Principal Secretary directing all district magistrates to re-verify rabi crop insurance policies. Claims will be released only after physical and revenue-record verification. A special committee is being constituted to examine both kharif and rabi claims, and officials said strict action will be taken against CSC operators, beneficiaries, and officials found involved.
Demands have been made for a CBI probe into the matter, citing the company’s earlier link to a multi-crore crop insurance scam in Mahoba. The investigation is ongoing, and further revelations are expected. The administration has swung into action, with the Jhansi DM saying that a special committee is being constituted to examine both kharif and rabi claims. The episode highlights the need for greater vigilance and oversight in the implementation of welfare schemes to prevent such large-scale fraud.