Chargesheet against Reliance Industries

Central Bureau of Investigation has filed chargesheet against the Mukesh-Ambani led Reliance Industries in the National Insurance Company Limited (NICL) scam.

As per a national daily, the chargesheet also includes names of four retired employees of NICL including a former CMD.

The CBI has also sought prosecution sanction against five serving NICL employees.

Scam

Some NICL officials had entered into a criminal conspiracy with a few private telecom provider employees between 2002 and 2004 to cheat NICL in order to cause undue favour and wrongful pecuniary gain to RIL and corresponding loss to NICL.

Two MoUs dated December 6, 2002 and June 25, 2003 were entered by RIL incorporating terms favourable to the company and detrimental to NICL.

On the basis of the said agreements, NICL issued two Special Contingency Policies (SCPs) to the Reliance Industries.

While issuing the two policies, the NICL officiales violated internal circulars in connivance with RIL officials which led to a huge loss of Rs 273.12 crore.

Probe and Charges

The CBI started probing the conspiracy in 2005 in reference to the CVC which alleged that irregularities in the issuance of insurance policies by NICL to RIL.

The chargesheet has been filed in a Mumbai Court against all the accused, including the Reliance Industries, under the provisions of the Prevention of Corruption Act for criminal conspiracy and other charges.

In its investigation the CBI observed that " the officials of Mumbai Regional office of NICL and Kalyan division office of NICL committed serious illegalities in connivance with officials of the Reliance Industries which resulted into wrongful loss of Rs 273.12 crore."

The agency also found that as per NICL circulars premium rates chargeable for laptops/mobile electronic equipments was supposed to be fixed between 1% and 1.5%.

However, in order to cause gains to the Reliance Industries, NICL officials fixed a low premium rate of 0.25 percent.

"NICL officials abused their official position and processed bogus claims amounting to by the RIL without proper verification," the probe report added.