ACB lodges FIR in J&K Bank’s insurance scam

Parvez, relative, others involved

Excelsior Correspondent
JAMMU, July 22: The Anti-Corruption Bureau (ACB) today lodged First Information Report (FIR) in Jammu and Kashmir Bank scam in which sacked Bank Chairman Parvez Ahmad Nengroo had signed insurance deal with IFFCO TOKIO with a view to give undue benefits to the company, where one of his relatives had been employed.
After registration of FIR, the ACB sleuths also conducted searches in IFFCO TOKIO office complex at Residency Road, Srinagar and seized documents pertaining to the scam.
An official handout issued by the ACB said it received a source report that a insurance deal in violation of norms has been made by J&K Bank with one company namely, IFFCO TOKIO in which close relative of former Nengroo was employed resulting into undue benefits to company.
“A verification conducted into the matter revealed that J&K Bank had already entered into venture with PNB MetLife Insurance Company for sale of its insurance products in the year 2000, followed by similar nature of venture with Bajaj Allianz Insurance Company for sale and distribution of its non life insurance products including health product in the year 2002,” the ACB handout said.
It added that the verification conducted into the case revealed that due to the insurance deal, the beneficiary company had been conferred business of insurance in Srinagar and Anantnag at the cost of bank resources and that of Bajaj Allianz Company Ltd which was already in arrangement with J&K Bank since 2002.
“The initial probe further revealed that in the first quarter of financial year 2018-2019, i.e. April to June, J&K Bank received commission from Bajaj Allianz to the tune of Rs 159 lakh, whereas commission received from IFFCO TOKIO General insurance Company Ltd for the first quarter of current financial year was to the tune of just Rs 88 lakh only which was less by Rs 71 lakh, thereby causing a loss in the form of commission to J&K Bank Ltd,” the handout said.
It added that by resorting to the acts of favoritism and abuse of official position as Chairman J&K Bank in connivance with MD IFFCO TOKIO General Insurance Company, his relative Asif Manzoor Beig was appointed in the insurance company against annual salary package of Rs 19,28,886 which was approximately 2.5 times higher than that of the package given by Bajaj Allianz General Insurance Company where the accused beneficiary was functioning as Deputy Manager.
It is pertinent to mention here that the accused beneficiary was serving as Chief Manager in IFFCO TOKIO General Insurance Company Srinagar office.
In order to effect search of the office premises of IFFCO TOKIO General Insurance Company located at Chinar Complex in Residency Road area of Srinagar, a warrant was procured from the competent court of law. The search was conducted to seize incriminatory evidence related to the commission of the offence by the officers/officials of IFFCO TOKIO General Insurance Company Ltd.
The omissions and commissions on the part of Parvez Ahmed Nengroo, the then Chairman J&K Bank Ltd in furtherance of conspiracy hatched with officer/officials of IFFCO TOKIO General Insurance Company Ltd while executing an insurance deal with the said company in order to secure appointment of his close relative Asif Manzoor Beig in the company and others at the cost of J&K Bank resources constituted criminal misconduct under J&K P C Act 2006 punishable under Section 5(1) (d) read with 5(2) J&K Prevention of Corruption Act and Section 120B of the RPC.
Case FIR No. 14/2019 has been registered in ACB Srinagar police station in the scam for further investigations.