J&K Bank deal: ACB searches insurance firm

ACB said that investigations have revealed that the said insurance deal has conferred IFFCO TOKIO the business of insurance in Srinagar and Anantnag at the cost of bank resources and that of Bajaj Allianz company Ltd. (Picture for representation purpose)

Continuing investigations into the Jammu and Kashmir Bank and its former chairman Parvez Ahmed, the state Anti-Corruption Bureau (ACB) on Monday searched offices of the IFFCO TOKIO insurance company in Srinagar. The raids followed what the ACB said was a source report on an insurance deal in violation of norms leading to undue benefits to a relative of the bank s former chairman and the insurance company.

In a statement, ACB said that investigations have revealed that the said insurance deal has conferred IFFCO TOKIO the business of insurance in Srinagar and Anantnag at the cost of bank resources and that of Bajaj Allianz company Ltd, which already has an arrangement with J&K Bank since 2002.

The initial probe further revealed that in the first quarter of financial year 2018-2019, 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 is Rs 88 lakh only, which is less by Rs 71 lakh, thereby a loss in the form of commission to J&K Bank Ltd has been caused.