A Special Judge for CBI cases in Mumbai has sentenced Shri Anand Prakash Mittal, the former Deputy General Manager (DGM) of New India Assurance Company (on deputation as Managing Director of its Nigerian subsidiary), to four years of rigorous imprisonment for fraudulently claiming service benefits while on deputation in Nigeria. In addition, the court has ordered the forfeiture of Fixed Deposits (FDs) worth approximately Rs. 1.3 crore, which he had acquired through his fraudulent actions.
The court ruling also requires that these FDs, amounting to Rs. 1,30,50,630, be deposited into the State treasury along with any interest accrued on them.
The Fraudulent Actions
The case dates back to September 14, 2016, when the Central Bureau of Investigation (CBI) registered the case based on a complaint filed by the New India Assurance Company Limited (NIACL), a government-owned insurance company. The complaint accused Anand Prakash Mittal of criminal breach of trust.
The allegations were that while serving as Managing Director of the Nigerian subsidiary of NIACL, Mittal abused his official position to fraudulently claim service benefits, including parting gifts and a pension at the rate of 18%, which were not approved by the company’s Board of Directors or any competent authority. The total amount he fraudulently claimed was Rs. 1.62 crores.
How the Fraud Was Carried Out
Mittal allegedly converted the amount he illegally claimed into Fixed Deposits (FDs), which he registered in the names of his relatives to hide the transactions. These actions were carried out without proper approval, making them illegal.
Investigation and Court Ruling
After an investigation, the CBI filed a formal chargesheet against Mittal on December 27, 2017. The court, after completing the trial, found him guilty of the charges and sentenced him to four years in prison for his role in the fraudulent activities. In addition to the jail sentence, Mittal was ordered to forfeit the Rs. 1.3 crore worth of FDs, which were the proceeds of his crime. Click here to Read more CBI Cases.
Implications
This case serves as a reminder of the consequences of abusing positions of power and trust, particularly when it comes to public sector organizations. It also highlights the role of thorough investigations by agencies like the CBI in holding individuals accountable for financial crimes.