Gujarat: CBI Court's great performance, 5 -year sentence and fine of Rs 60 lakh in fire insurance fraud case

Ahmedabad, September 23 (IANS). To combat the increasing fraud cases in the insurance sector, a special court of the Central Bureau of Investigation (CBI) took a difficult stand and sentenced two accused to five years of strict imprisonment. In addition, a fine of 60 Lakh rupees was also imposed. The decision came in the case of fraudulent fire insurance claim related to a factory incident in 2002, in which the United India Insurance Company Limited (UIICL) suffered a financial loss of Rs 36 Lakh 86 thousand 451. The special judge of the CBI ruled on Monday, which became a symbol of judicial rigor on insurance. The first of the accused convicted, Rashik J. Patel, is Pulasania, a partner of Messrs Meera Chemicals (Gidc, Panoli, District Bharuch). He was sentenced to five years of strict imprisonment and a fine of Rs 45 Lakh. The second accused is Sanjay Ramesh Chitre, who is Messrs Sr. Chitre and is the owner and surveyor of the business. He was also sentenced to five years and a fine of Rs 15 Lakh. Both have serious allegations such as criminal conspiracy, fraud, forgery for fraud and the use of false documents as real. The case was registered on June 29, 2006 on the basis of confidential information received from sources by the CBI’s anti-corruption branch (ACB), Gandhinagar. Investigation revealed that some public servants of Uiicl, along with the accused, are hatching a criminal conspiracy. He abused his post and cheated the government box at the disposal of fire insurance claims. The incident happened on January 20, 2002, when the Meera Chemicals factory caught fire in Panoli. Brand has caused major damage to building, equipment, stock and chemicals. The firm immediately reported to UIICL and appointed Sanjay Chitre’s company as a surveyor. Chitre assessed the loss on Rs 36 Lakh 92 thousand 137. Claims have been approved and paid after investigation and recommendations from the UIICL branch officials and divisional offices. But the CBI investigation revealed that false documents, including false accounts, have been submitted to exaggerating the loss and recovery costs. Rashik Patel led, while Chitre compiled the recording report. This led to a loss of more than 36 lakhs to the company. -Ians Sch Share This Story Tags