Mumbai, Jan 22 – Maharashtra’s agriculture department has rejected 4.14 lakh crop insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY) for 2024, citing widespread misuse of the scheme. The rejections represent 2.5% of the 1.68 crore applications received, marking the highest rejection rate since the scheme’s inception.
“We have rejected 4.14 lakh applications and saved the government’s money. In fact, we have averted a scam,” said Maharashtra Agriculture Minister Manikrao Kokate. He added that some claims were filed on non-agricultural land, including temples, mosques, and even government plots.
The irregularities include insurance claims for non-existent crops, land not owned by the applicants, and even plots occupied by petrol pumps. Beed district accounted for 1.09 lakh rejected claims, the highest among districts, followed by Jalgaon (33,786) and Parbhani (21,315).
A senior agriculture department official highlighted the role of common service centers (CSCs) in the fraud, with 96 centers under investigation for filing bogus claims. “Some CSC operators prepared false proposals in farmers’ names and uploaded them without their knowledge,” the official said.
In Nashik, claims were filed for over 100 acres of non-agricultural land, while another case in Chandwad tehsil involved claims for land occupied by a petrol pump.
The state has implemented cross-verification and physical inspections of all districts before processing claims. “This way, we have managed to curb the misuse of the scheme and saved crores of exchequer’s money,” the official said.
The government has proposed two measures to prevent future misuse:
- Criminal action against those found guilty of fraudulent claims.
- A five-year ban on farmers who submit bogus data from applying to PMFBY.
The agriculture department has also directed district collectors to take action against the CSCs involved. According to the state government, insurance rates per hectare range from ₹20,000 for moong (green gram) to ₹90,000 for onions, depending on the crop. The total liability for the rejected claims is yet to be calculated.
Despite the efforts to curb misuse, the rejection rate for 2024 highlights a sharp rise in irregularities compared to previous years. In 2023, 3.8 lakh claims were rejected out of 2.42 crore applications (1.57%), while 2022 saw 11,761 rejections from 1.04 crore applications (1.13%).
Minister Kokate said feedback would be collected from farmers and stakeholders to identify areas for improvement in the scheme. “To ensure there are no irregularities, we have instructed officials to take feedback from farmers and others to check whether any rectifications are required in the scheme,” he said.
A detailed report on the rejected claims is being prepared and will be submitted to the government in the coming weeks for further action.
