Mahoba, Uttar Pradesh – A massive scam worth over ₹40 crore has been uncovered in Mahoba district under the Pradhan Mantri Fasal Bima Yojana (PMFBY), where fraudsters allegedly insured not only farmers’ land but also rivers, drains, hills, pathways and forest department land using forged documents. After remaining absconding for 112 days, the district manager of insurance company IFFCO Tokio, identified as Nikhil, has finally been arrested along with three other accused.
How the Scam Was Unearthed
The fraud came to light following an investigation ordered by District Magistrate Gajal Bhardwaj, which exposed a deep nexus between the insurance company, Common Service Centre (CSC) operators, and officials of the agriculture department. Based on the findings, an FIR was registered on August 27 at Charkhari police station.
So far, cases have been registered against 26 named and several unidentified accused, and 23 people—including insurance staff, CSC operators, and a woman accused—have been sent to jail. Bail pleas of five accused were rejected by the district sessions court on September 24. Six separate cases have been registered across police stations including Sadar Kotwali, Charkhari, Kul Pahad, Panwari and Ajnar.
Arrests After Months on the Run
Additional Superintendent of Police Vandana Singh confirmed that the arrested include:
- Nikhil, District Manager, IFFCO Tokio (resident of Jalaun)
- Arvind Yadav, CSC operator
- Shyamlal Sen, resident of Roshanpura, Charkhari
- Brijgopal Arjariya, resident of Chhatarwara village
Nikhil had been absconding since the FIR was filed and was finally arrested after 112 days.
Modus Operandi
Investigators revealed that the accused targeted villages under land consolidation (chakbandi), where details of landowners and sharecroppers are not clearly visible on online portals. Exploiting this loophole, fake sharecroppers were created using forged affidavits on ₹10 stamp papers, and crop insurance policies were issued in their names. Shockingly, claims were paid without proper verification, allowing the accused to siphon off huge sums.
Officials admit that had due verification been conducted at the insurance company level, the scam could have been prevented. The role of agriculture department staff and insurance employees has also come under serious suspicion. As disciplinary action, Atulendra Vikram Singh, insurance desk assistant in the agriculture department, has been suspended.
Scale of the Fraud and Ongoing Probe
According to officials, the scam spans Mahoba, Hamirpur and Tindwari regions, with fraudsters from Madhya Pradesh, Rajasthan, Bihar and other states allegedly involved. The matter reached the Union Government after Samajwadi Party MP Ajendra Singh Lodhi raised the issue. Union Agriculture and Rural Development Minister Shivraj Singh Chouhan has directed authorities to conduct a detailed probe and submit a comprehensive report.
Insurance Policies Under Scrutiny
For the Kharif 2025 season, a total of 2,67,779 crop insurance policies were issued in Mahoba, including 1,41,376 non-loanee farmers. Exercising caution, the insurance company has returned 46,218 policies due to incorrect data. Around 2,000 farmers have reapplied after correcting their records. District officials clarified that no valid policy has been cancelled, and all returned applications will be re-verified at the tehsil level.
A Serious Blow to Farmers’ Trust
The scam has raised serious questions about the implementation of welfare schemes meant to protect farmers. Authorities say the investigation is ongoing and more arrests are likely, as the government aims to ensure accountability and prevent such large-scale misuse of public funds in the future.
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