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Gujarat Congress alleges irregularity in crop insurance plan

The opposition party alleged the state government extended undue favours to the tune of Rs 16,000 crore to private crop insurance companies and demanded an independent probe.

Published: 16th October 2017 09:57 PM  |   Last Updated: 16th October 2017 09:57 PM   |  A+A-

Image for representational purpose only. (File photo | Reuters)

Express News Service

NEW DELHI: On a day PM Modi and BJP chief Amit Shah attacked the Congress in poll-bound Gujarat, the opposition party alleged the state government extended undue favours to the tune of Rs 16,000 crore to private crop insurance companies and demanded an independent probe into the financial irregularities.

According to senior Gujarat Congress leader Arjun Modhwadia, against Rs 22,000 crore paid towards premium under the Pradhan Mantri Fasal Bima Yojana, the insurance companies cleared claims only worth Rs 6,000 crore.

“That is a profit of Rs 16,000 crore for private insurance companies. We demand an independent inquiry by a commission headed by  sitting High Court Judge,” Modhwadia tweeted.

“Corruption cases should also be registered against state ministers, bureaucrats and all others involved in the financial irregularities,” he said.

Leveling another charge on the ruling BJP, the Congress leader said the Gujarat government committed serious irregularities in crop sampling in 2016 to benefit a private insurance company KDM Enterprises.

Elaborating on the issue, he said the Gujarat government had awarded KDM Enterprises the work of crop sampling through an order dated November 18, 2016. “But the firm completed such humongous task in just eight days. This is impossible. It shows work was done only on paper,” said Modhwadia.

The Congress leader further said that while the estimate for checking 55,844 crop samples was only Rs 8 crore, KDM Enterprise's tender was passed for Rs 14.56 crore. “The whole issue needs investigation,” said Modhwadia.

Congress leaders said these allegations show the state government cares little for the small farmers and actually works to help the big corporates.



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