Bhopal: 12 Former Insurance Firm Officers Get 4-year RI

Bhopal (Madhya Pradesh): The Special Judge for CBI Cases Indore has sentenced 12 former officers of New India Assurance Co Ltd (NIACL) to undergo four years of rigorous imprisonment with a fine of Rs.10,000 each for causing a huge loss to the company, the officials said on Thursday.

The CBI had registered a case on August 28,1997, against a then divisional manager, NIACL (Divisional office Ujjain) on the allegations of releasing unauthorised payments of Rs.17,28,033/- towards agent commission and causing a loss to the company.

It was further alleged that Madhya Pradesh Rajya Sahakari Bank Maryadit, Bhopal, also known as the Apex Bank had purchased 31 Group Janta Personal Accident policies in 1994 from NIACL, division office, Ujjain, in favour of unnamed loanee farmers of various primary agricultural cooperative societies affiliated to respective district central cooperative banks in the state.

The investigation revealed that the accused entered a conspiracy with each other and caused undue pecuniary gain to 36 agents, 11 development officers and also to several other accused to the extent of Rs 39,33,802.20 (Approx) and loss of the said amount to the insurance company as well as insured loanee members.

They also hatched a conspiracy with each other, with malafide intention, to cheat the insurance company as well as the said loanee members of primary agricultural cooperative societies affiliated with 31 district central cooperative banks.

The Trial Court found the said accused guilty and convicted then manager SP Kulkarni, then branch manager NK Bhamawat, then AAO Avinash Damodar Joshi, then development Officer PK Banthia, then development officers, including Pankaj Khandelwal, Arvind Jain, DK Nathani, Sanjay Sharma, Arun Khandelwal, Sanjay Singh, BL Malviya, and Arvind Sharma.