Rs 500 Crore Insurance Scam: ED Launches investigation into Rs 500 Crore Insurance Scam

The Enforcement Directorate (ED) team in Lucknow has started a big money laundering investigation against a criminal gang involved in a huge insurance scam worth over Rs 500 crore. This scam is not just about fake insurance policies—it also includes some shocking crimes like arranging murders to illegally claim insurance money.

What Is This Scam About?

The scam involved fake life insurance and vehicle insurance policies. The gang created false documents and manipulated bank transactions to make fraudulent insurance claims. Their operations spread across 12 different states in India.

The scam came to light when the police in Sambhal stopped an SUV on January 17. The vehicle was carrying large amounts of cash and forged documents, which led to further investigations.

How Did the Gang Operate?

Investigators found a disturbing pattern in the gang’s activities. They targeted sick and vulnerable people—those who were seriously ill or close to death. The gang would take out insurance policies on these individuals using false information. They paid only small, short-term premiums but claimed the full insurance amount after these people died unexpectedly.

In some cases, the gang even created fake death certificates to get insurance money for people who had already died. This made the scam even more complex and serious.

What Is the Enforcement Directorate Doing?

The ED is focusing on tracking how the gang laundered the illegal money earned from the scam. They are examining suspicious financial transactions, fake insurance claims, and the bank activities linked to this fraud.

They are also investigating the role of banks, insurance companies, and government health schemes like the Pradhan Mantri Jan Arogya Yojana (PMJAY), which the gang misused to carry out their illegal activities.

Arrests and Ongoing Probe

So far, 50 people have been arrested. These include two bank employees from Bulandshahr and the owner of a private investigation company called East India Investigation Company. These people helped the gang by manipulating insurance verification processes and other parts of the scam.

The ED is digging deeper into the money trail to find out where and how the illegal funds were moved through banks and financial institutions. The investigation will also try to identify any government officials, such as village secretaries and panchayat heads, who may have helped the gang.

Shocking Murders Linked to the Scam

The scam also involves four confirmed murders. Among the victims is Daryab, a 38-year-old man from Badaun, who was brutally killed by being hit with a hammer and run over by a vehicle. Another victim, Sanjay, who had disabilities and lived in Islamnagar, was allegedly killed by his own brother to claim a huge insurance payout of Rs 95 lakh.

Other murder victims include Aman Kumar from Amroha and Mohd Saleem from Rahra, both connected to this fraud network.

Anukriti Sharma, the Assistant Superintendent of Police from Sambhal who uncovered the scam, said this case is more than just insurance fraud. It involves serious financial crimes and has caused great harm to many innocent people.