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Large Scale Subsidy Distribution Fraud of Rs. 13.6 Crore by Premchand More, a Divisional Manager of the State-Owned Listed PSU The New India Assurance Company Limited



In 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.

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


Maharashtra Livestock Insurance Scheme – 2016-17 (Implemented by Premchand More, Divisional Manager, New India Assurance Co. Ltd.)
Period of Insurance15th 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 Covered4,05,367
No. Of Beneficiaries76,653
No. Of Beneficiaries where subsidy is over utilized13,097
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 means of subsidization of Insurance Premium. Premchand provided Poly-urethane tags to be pinned to the animal’s ear. The ear-tag entitles the dairy farmers to avail subsidization of Insurance Premium to the 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 the Government Subsidy amount, thus violating the guidelines in about 13,000 cases resulting in Rs. 2.97 Crores of loss to the public exchequer. We also have 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, 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 Chief Vigilance Officer – The New India Assurance Co. Ltd., Director General of Police – Maharashtra & Commissioner of Police, Mumbai for further investigation in this matter.

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