Mon. Oct 20th, 2025

Bombay High Court Overturns State’s Rs 374.61 Crore Recovery Notices Against Crop Insurer

Bombay High Court Overturns State's Rs 374.61 Crore Recovery Notices Against Crop Insurer
Bombay High Court Overturns State's Rs 374.61 Crore Recovery Notices Against Crop Insurer

The Aurangabad bench of the Bombay High Court has recently set aside notices issued by the Maharashtra state government that sought to recover Rs 374.61 crore from Bajaj Allianz General Insurance Co. These notices, issued under the Maharashtra Land Revenue (MLR) Code, 1966, demanded payment for alleged arrears of land revenue from the kharif season of 2021, in accordance with revamped operational guidelines of the Pradhan Mantri Fasal Bima Yojana (PMFBY).

The state government asserted that the insurance company had paid only 50% of the amount deemed due and payable, and had received multiple complaints from farmers regarding unsatisfied insurance claims. Bajaj Allianz, however, challenged these notices, contending that the localized calamity of unseasonal rains occurred between September 23 and October 10, 2021, while soybean harvesting in the affected district had commenced on September 17 and continued until November 11 of that year.

A Public Interest Litigation (PIL) filed by two farmers had supported the state’s demand, seeking court directives for the company to pay the outstanding balance with interest to the farmers. Ultimately, the High Court allowed the insurance company’s plea, thereby negating the state’s claim for the additional recovery.

Source: indianexpress.com

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