An unfortunate series of events that unfolded in the Maharashtra Livestock Insurance Tender, led us to the discovery of large-scale subsidy distribution fraud purportedly by Premchand More, Divisional Manager, The New India Assurance Co. Ltd. (Report)
Mumbai Parivartan is in possession of the agreement executed between Dr. Gaikwad, then CEO Maharashtra Livestock Development Board & Premchand More, Divisional Manager, New India Assurance Co. Ltd. The Insurance company represented by Premchand More was assigned the responsibility to evenly distribute Rs. 13.6 Crore of Govt. Subsidy to the dairy farmers. We discovered that there are about 13,000 cases of fraudulent distribution of subsidy causing a loss to the exchequer in the tune of Rs. 2.97 Crores.
FACTS:
| Maharashtra Livestock Insurance Scheme – 2016-17 (Implemented by Mr. Premchand More, Divisional Manager, New India Assurance Co. Ltd.) | |
| Particulars | Details |
| Period of Insurance | 15th Feb 2016 to 29th March 2017 |
| Total Premium (Rupees) | 24,58,67,108 |
| Govt. Subsidy Amount (Rupees) | 13,60,98,008 |
| Farmer’s Share (Rupees) | 10,97,69,100 |
| No. Of Animal’s Covered | 4,05,367 |
| No. Of Beneficiaries | 76,653 |
| No. Of Beneficiaries where subsidy is over utilized | 13,097 |
| Total Premium (Rupees) | 7,12,90,415 |
| Govt. Subsidy Amount (Rupees) | 3,98,57,123 |
| Farmer’s Share (Rupees) | 3,14,33,292 |
| Loss to Ex-Chequer (Rupees) {(Total No. Of Animals Per Beneficiary <minus> 5 X Subsidy Amount Per Animal)} | 2,97,27,161 |
Modus Operandi:
The dairy farmers approached The New India Assurance Co. Ltd. represented by Premchand More to seek a discount on Livestock Insurance by the means of subsidization of Insurance Premium. Premchand provided Poly-urethene tags to be pinned to animal’s ear. The ear-tag entitles the dairy farmers to avail subsidization of Insurance Premium in tune of 50-70%. The benefit of subsidy according to the agreement is restricted to 5 Animal Units per Household. Premchand More misused his official position to extend Government Subsidy amount thus violating the guidelines in 13,000 cases resulting in Rs. 2.97 Crores of loss to the public ex-chequer. We also have the access to the letters issued by Premchand More to the Hon. Minister ADF, GoM and to The Principal Secretary, Dept of ADF, GoM. Immediately upon understanding the misappropriation of funds, the statutory auditors of the insurance company pressed for recovery of funds. Premchand further tried to defraud Govt. of Maharashtra by misrepresentation of material facts. The recoverable amount according to Premchand was never owed by Maharashtra Government to the Insurance Company.
Mumbai Parivartan has filed an official complaint in the public interest to the CVO New India Assurance, DGP – Maharashtra & Commissioner of Police, Mumbai & Anti-Corruption Bureau, CBI for further investigation in this matter.
