Irregularities found in Maharashtra crop insurance scheme, shrines shown as farmlands: Minister

Mumbai: Maharashtra Agriculture Minister Manikrao Kokate has admitted irregularities in the implementation of the Re 1 crop insurance scheme for farmers, noting places of worship were shown as agricultural lands to claim benefits.

More than four lakh crop insurance applications, some filed even by those residing outside Maharashtra, have been rejected, Kokate on Tuesday said, adding a "bogus industry" has come to light which involves non-eligible people seeking benefits of the scheme.

The minister, however, asserted that no money has been actually lost as funds were not transferred by the government into the bank accounts linked to bogus applications.

Speaking to the media here, Kokate said instances of malpractice in the scheme have been identified in several aspects, including cases where mosques, temples and vacant lands were falsely declared as agricultural lands to claim benefits.

"I have instructed district collectors to take immediate action," he said.

The crop insurance scheme was introduced in the 2023 budget by the then deputy chief minister and finance minister Devendra Fadnavis. Under the scheme, farmers can get crop insurance for just Re 1.

Before the scheme, farmers had to pay the company 2 per cent of the insurance premium.

The agriculture department had received several complaints from farmers about the scheme's implementation, chiefly on grounds of non-payment of the insurance amount as well as mismatch of records.

Agriculture Secretary Vikaschandra Rastogi later headed a committee which compiled the complaints and conducted a probed into them.

Kokate said, "Over four lakh crop insurance applications were rejected across the state. Some of these applications were filed by people from outside Maharashtra. We have taken significant steps to address the irregularities. Farmers will be issued unique ID cards linked to Aadhaar to ensure transparency." An updated database of farmers is being prepared, the minister said, adding that significant reforms will be introduced in the scheme.

Asked how the large-scale bogus claims could be made, Kokate attributed much of the malpractice to certain Common Service Centres (CSCs), where people involved in data entry of details of farmers are paid Rs 40 per application.

"The operators of such centres filed bogus applications to earn more. We have ordered action against 96 such centres," he said.

The minister, however, said not all farmers are to be blamed for the irregularities and asserted the scheme will remain in force.

"This (detection of corruption) does not mean the scheme should be shut down. The flaws will be corrected to make the scheme more transparent," the NCP minister assured.

He said actions were taken in recent days, and the issue will be discussed in the state cabinet.

"If changes are needed in the scheme, we will study them and present the matter in the cabinet. Ultimately, all decisions regarding the scheme will be taken there," he opined.

In response to assertions that only Beed district in central Maharashtra witnessed irregularities, Kokate dismissed them as politically motivated.

"The government has saved funds by rejecting bogus applications, and no money was transferred into the accounts linked to these invalid applications," he said.

Meanwhile, BJP leader and former state finance minister Sudhir Mungantiwar said it would be incorrect to label the Re 1 crop insurance scheme as "flawed".

"We have taken Rs 1,551 crore worth of insurance for farmers. If any company provides 80 per cent compensation for losses, our contribution decreases. Beyond 100 to 120 per cent losses, we bear the full burden. Today, the farm sector requires a mission akin to 'Mission Jai Kisan'. It is essential to focus seriously on this area," Mungantiwar said.

Maharashtra Congress chief Nana Patole, talking about an alleged crop insurance scam in Beed district, claimed insurance for barren land was fraudulently claimed, resulting in irregularities to the tune of Rs 350 crore.

He accused insurance companies and the Mahayuti government of being hand in glove to exploit funds meant for farmers.

"While farmers have not received compensation, the insurance companies have profited significantly by looting their funds," Patole alleged.

Cabinet Minister for Water Resources (Godavari and Krishna Valley Development Corp) Radhakrishna Vikhe Patil batted for continuation of the scheme.

"The scheme was launched by Fadnavis and it has proved to be helpful to farmers. Some people are unnecessarily speculating on scrapping the scheme because of some allegations. No such plan or proposal is before the state government," he told reporters in Pune.