After Minister, Secretary’s family availed of agriculture scheme, new rules bar

Almost two months after an inquiry It has revised the definition of 'family' – bringing within its ambit the subsidy applicant's spouse, father, mother, sons and daughters – and has made holders of constitutional posts, serving ministers, MPs, MLAs, mayors, district panchayat chiefs and government employees ineligible for financial assistance under NHB schemes. The NHB, an autonomous body under the Ministry of Agriculture and Farmers Welfare, amended the scheme guidelines on August 21.

“With a view to rationalise financial assistance, ensure equitable distribution of benefits, prevent duplication of subsidy, and make the implementation of the Schemes more transparent and effective, following amendments in the Scheme Guidelines shall be applicable with immediate effect,” read a circular issued The scheme – Development of Commercial Horticulture through Production and Post-Harvest Management of Horticulture Crops – is aimed at promoting commercial farming (for profit) of horticultural crops on a large scale.

Key Analysis and Detailed Timeline

The crops under the scheme are three types of vegetables – capsicum, cucumber and tomato; and eight varieties of flowers including rose, lilium and chrysanthemum. The scheme offered a maximum subsidy of 50 per cent, capped at Rs 1 crore per family, of the project cost.

Under the new guidelines, the government has made clear that five categories of people shall not be eligible for financial assistance under NHB Schemes.

These comprise of: -Present holders of constitutional posts. -Present ministers and ministers of state; members of Lok Sabha and Rajya Sabha, members of State Legislative Assemblies/Councils, mayors of municipal corporations and chairpersons of district panchayats. -Serving employees of Central/State Government ministries/departments, PSUs, autonomous bodies and local bodies (except MTS/CIass-lV/Group D employees).

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-Superannuated/retired pensioners receiving a monthly pension of Rs 10,000 or more, excluding MTS/Class-lV/Group D employees. -Group of Farmers. “Family members of persons falling in the above categories may, however, avail one-time assistance, subject to the applicable provisions of the revised definition of family,” the new guidelines said.

Broader Impact and Sector Outlook

The revised definition of 'family' is as follows: “For the purpose of determining eligibility under NHB Schemes, the term 'family' shall comprise the applicant's spouse, father, mother, sons and daughters.” As per the old guidelines, the term 'family' was defined as “the husband, wife, and dependent minor children.” On June 27, The Indian Express reported that Bhagirath Choudhary, Minister of State in the Union Ministry of Agriculture and Farmers’ Welfare, availed Rs 99 lakh subsidy for his farm in 2025 under the NHB's scheme 'Development of Commercial Horticulture through Production and Post-Harvest Management of Horticulture Crops.' A month later, Choudhary returned the subsidy amount to the government.

The inquiry The government had appointed Gangwar as the Higher Education Secretary on July 23, but even before his joining, his appointment was cancelled (on August 10). As per the new norms, “Only one member of a family shall be eligible to avail financial assistance under NHB Schemes, whether individually or through HUF, partnership/proprietorship firm or as a director of a company, subject to the applicable provisions.” “Financial assistance availed Once financial assistance has been availed “The restriction shall apply across all NHB Schemes/components and shall constitute the final entitlement of the family,” the new guidelines added.

“Suppression, misrepresentation or furnishing of incorrect information for obtaining financial assistance shall render the applicant liable for recovery of the assistance released along with applicable interest.” The Centre has also reduced the subsidy component from 50 per cent to 35 per cent for beneficiaries in general category states and 45 per cent in North Eastern or Himalayan states.

The new guidelines have also made a provision for voluntary refund/exit from the NHB Schemes. “A beneficiary may, during the prescribed lock-in period, voluntarily opt out of the Scheme Upon acceptance of the refund