CBI Court sentenced 5 Year Jail to Divisional Manager of NIACL for doing Fraud in Insurance Claim

A Special CBI Court (Court No. 07) in Ahmedabad has sentenced five individuals to five years of rigorous imprisonment (RI) for their involvement in a fraudulent insurance claim case. The court also imposed a total fine of ₹23.5 lakh on the accused. Those convicted include Dinesh Parshotamdas Patel, Sanjay R. Chitre, Manan D. Patel, Shishupal Rajput, and Amar Singh Bialbhai.

Background of the Case

The case was registered by the Central Bureau of Investigation (CBI) on January 30, 2003, based on a complaint against the then Senior Divisional Manager of New India Assurance Company Limited (NIACL), Navsari, Gujarat, and others. It was alleged that the public servants conspired with private individuals to sanction insurance claims based on forged documents, resulting in significant financial losses to NIACL.

Investigation Findings

The CBI’s investigation revealed that during 1999-2000, the accused conspired to defraud the insurance company by submitting false claims under a chemical insurance policy. Manan Patel and Dinesh Patel insured chemicals with NIACL and subsequently fabricated documents to support fake claims of loss.

Key accused, S.R. Chitre, a surveyor and loss assessor, assessed the claims based on forged documents and manipulated photographs to depict a staged accident as genuine. Meanwhile, Amar Singh Bialbhai, an assistant sub-inspector (ASI) and in-charge of Mehlol outpost, lodged a false FIR and prepared fake panchnama reports to substantiate the fabricated losses. Another accused, Shishupal Rajput, a recovery agent, handled the financial transactions to make the claims appear legitimate.

The fraudulent activities caused NIACL a loss of ₹4,89,488.

Legal Proceedings

The CBI filed its chargesheet on June 24, 2005, naming several accused, including:

• Shri S.A. Parmar: Senior Divisional Manager, NIACL (charges abated due to his death during the trial).
• Shri S.R. Chitre: Surveyor/Loss Assessor.
• Shri Manan Dineshbhai Patel: Partner at M/s Pre-Chem Industries.
• Shri Dinesh Parshotamdas Patel: Private individual.
• Shri Shishupal Rajput: Agent and investigator.
• Shri Amar Singh Bialbhai: ASI and in-charge of Mehlol outpost.

During the trial, the prosecution relied on the testimonies of 25 witnesses and submitted 228 documents as evidence.

Verdict

After examining the evidence, the court found the accused guilty of conspiring to defraud NIACL and convicted them. However, charges against Shri S.A. Parmar were dropped due to his death during the trial. This judgment underscores the judiciary’s commitment to tackling corruption and fraud in financial institutions, ensuring accountability for those involved in such activities.