Rs 400 crore insurance scam hits Railways

Delhi Police arrested a 52-year-old senior accounts officer of the Indian Railways in a financial fraud estimated to involve more than Rs 400 crore,  for allegedly siphoning off money contributed by 65,000 employees for a Life Insurance Corporation (LIC) policy as part of a group insurance scheme.

The contributing employees were kept in the dark even as the cooperative society collected Rs 32.5 lakh from them every month and ran their own insurance scheme, even paying off claims said Police.

The police have now roped in auditors to assess the cooperative society accounts to understand the amounts involved and what was done with the money. The fraud was reportedly going on for the past 10 years from Baroda House and investigators say more arrests are likely. Another employee who headed the cooperative society is already under scanner and some LIC employees could also be involved, police said.
The first accused, Ajay Bhatnagar, was arrested by the Tilak Marg police recently after it was revealed that he, as member of the elected body of the cooperative society, took a whopping Rs 1.2 crore as commission from LIC for another employees’ policy. The commission was collected in the name of Bhatnagar wife and sister-in-law.

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