Anti-corruption body finds insurance fraud in J&K Bank
An insurance fraud has been exposed in the Jammu and Kashmir Bank with an insurance company named IFFCO Tokio, according to a source report received by the Anti Corruption Bureau (ACB).
According to the report, the J&K Bank made an insurance deal with IFFCO Tokio which violated the bank norms.
Further, a close relative of former chairman of J&K Bank Parvez Ahmed Nengroo is employed with IFFCO Tokio, resulting in undue benefits to the said company.
Following an investigation, it was revealed that the J&K Bank had entered into a venture with PNB Metflife Insurance company for sale of its insurance products in 2000, followed by a similar venture with Bajaj Allianz Insurance Company for sale of its non-life insurance products in 2002.
It was further revealed that due to the insurance deal with IFFO Tokio, the company had been conferred business of insurance in Srinagar and Anantnag at the cost of J&K Bank resources and that of Bajaj Allianz company which was already in arrangement with the bank since 2002.
The initial probe found that in the first quarter of the financial year 2018-2019, J&K Bank received commission from Bajaj Allianz to the tune of Rs 159 lakh.
On the other hand, the commission received from IFFCO Tokio for the first quarter of current financial year was to the tune of Rs 88 lakh.
The amount is less by Rs 71 lakh, resulting in a loss in the form of commission to the J&K Bank.
The Bank's former chairman Parvez Ahmed Nengroo also abused his official position by conniving with IFFCO Tokio and appointed his relative Asif Manzoor Beig in the said insurance company against an annual salary package of Rs 19,28,886.
The package 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.
A warrant was arranged and the office premises of IFFCO Tokio located at Chinar Complex, Residency Road in Srinagar was searched to seize incriminatory evidence related to the commission of the offence by the officials of IFFCO Tokio.
An FIR with No 14/2019 was registered in PS ACB Srinagar and the matter is under investigation.