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O.I.H.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 2701
TO BE ANSWERED ON THE 4TH AUGUST, 2026
MISAPPROPRIATION OF FUNDS UNDER PMFBY
2701. SHRI NEERAJ MAURYA:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state :
(a) whether the attention of the Government has been drawn to the crop insurance scam
exposed in Uttar Pradesh, where compensation worth crores of rupees was
misappropriated on the basis of fake land records (Khatauni) without actual agricultural
land;
(b) whether insurance claims were distributed to four times the number of actual farmers
in several villages and 90% of the fraudulent activities were carried out in the names of
non-loanee farmers;
(c) the role played by the collusion of bank officials and insurance companies in this
matter, and whether the Government will conduct a technical investigation into the portals
that automatically approved fake data numbers; and
(d) whether the Government proposes a comprehensive action plan to ensure the data
security of farmers in the future?
ANSWER
MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) State Government of Uttar Pradesh has informed that the instances of fraudulent
insurance obtained through forged means by certain persons under the Pradhan Mantri
Fasal Bima Yojana (PMFBY) in certain districts of the State have come to the notice of
the Government. The cases were immediately investigated and necessary action, as per
rules, has been taken against the persons found guilty. The details are as under:
In district Mahoba, a total of 06 First Information Reports (FIRs) have been registered,
60 persons have been named and 50 persons have been arrested.
In district Jhansi, 02 FIRs have been registered, 11 persons have been named, and 01
person is in judicial custody. Recovery process of the compensation amount obtained
through wrongful means has also been effected in respect of 10 persons pertaining to
Simardha Gram Panchayat and in Naya Gaon.
In district Hamirpur, 1,145 insurance policies pertaining to 391 non-loanee farmers for
Kharif 2025 season were found to be incorrect during investigation and have since been
cancelled.
In district Farrukhabad, during Rabi 2024-25, 35 persons from 03 villages of the district
wrongfully obtained compensation. During investigation, 02 FIRs have been registered
against 03 Tehsil Coordinators of insurance companies, 06 Bank Branch Managers and
21 farmers among others. In district Mathura, upon detection of cases of duplicate insurance during Rabi 2021-22,
investigation revealed that compensation had been obtained through 267 applications
submitted by 152 persons. Recovery amounting to ₹27,52,123.13 relating to 22
applications of 17 persons has been made. Further, compensation amounting to
₹14,34,382.55 received against 15 applications relating to 06 other persons has been
refunded. Thus, a total amount of ₹41,86,505.68 has been recovered in the district.
In the State, following investigation under PMFBY, 1,19,531 insurance applications for
Kharif 2025 season and 36,247 insurance applications for Rabi 2025-26 season have
been cancelled.
(b) : No, Sir. State Govt. of Uttar Pradesh has informed that no such case has come to
the notice of the State Government so far.
(c) & (d) : During investigation by the State Government, the involvement of personnel of
banks/insurance companies has been found in the districts of Jhansi, Mahoba and
Farrukhabad.
The Government of India has also taken cognizance of the matter and has issued
necessary directions to all insurance companies implementing the Scheme, CSC e-
Governance India Limited, and all participating banks to strengthen scrutiny of enrolment
proposals and ensure strict compliance with the Operational Guidelines of PMFBY.
Land records data of Uttar Pradesh has already been integrated with National Crop
Insurance Portal (NCIP). Further, from the ensuing crop season, a provision has been
made under the NCIP whereby all applications pertaining to consolidation
(Chakbandi)/non-digitized villages shall be accepted by the concerned insurance
company only after verification and approval by the District Level Monitoring Committee
(DLMC) headed by the District Magistrate.
Necessary instructions have already been issued to the insurance companies and
the States/Union Territories in respect of localised crop loss assessment. As per these
instructions, crop loss assessment is required to be conducted in the presence of the
designated Government field functionary, keeping transparency while recording the
assessment and a copy of the survey report is mandatory to be handover to the
concerned farmer. Further, the process of localised crop loss assessment is done through
the Crop Loss Assessment Process (CLAP) module under PMFBY.
In order to prevent fraudulent applications under the scheme, various verification
and validation protocols have been implemented at the stage of enrolment of farmers
under the scheme in National Crop Insurance Portal (NCIP) such as Aadhar validation of
farmers, bank account validation through PFMS, land record validation through ROR of
the States/UTs, AgriStack farmer ID validation and insured Crop validation with Digital
Crop Survey, etc.
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