FRAUD: CBI files chargesheet against former CMD Oriental Insurance Company and others
Author(s): SK VyasJalandhar, November 5, 2012 : The Central Bureau of Investigation has filed a charge sheet in the Court of Special Judge, Tis Hazari Court, Delhi against former CMD, GM, and two DGMs, all of The Oriental Insurance Company...
cityairnews
Nov 5, 2012 12:30
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Jalandhar, November 5, 2012 : The Central Bureau of Investigation has filed a charge sheet in the Court of Special Judge, Tis Hazari Court, Delhi against former CMD, GM, and two DGMs, all of The Oriental Insurance Company Limited.
A private airlines company and the then Managing Director of the said private airlines company and other unknown Public servants/private persons Under Sections 120-B read with Sections 420 Of the Indian Penal Code and Section 13(2) read with (13)(1)(d) of The Prevention of corruption Act, 1988.
According to the Spokesperson of the Central Bureau of Investigation, CBI had registered a case and it was revealed in investigation that the then CMD, Oriental Insurance Co. Ltd. (OICL), allegedly in criminal conspiracy with Managing Director of a private airlines company and by abusing his official position as a public servant, had shown favour to the said private airlines company in getting 220 Credit Insurance Policies issued during the period 2005 to 2010.
He revealed that the said Credit Insurance Polices were used by the said private airlines company as security for obtaining multiple bank guarantees from Public Sector banks viz. SBI, Indian Bank, Andhra Bank, Bank of India and IDBI to cover its transactions with State owned oil companies.
The credit risk was alleged to have been accepted by OICL without analyzing the financials and taking into the account the credit ratings of the company against the established norms and procedures.
On default by the said private airline company, the oil companies invoked the bank guarantees and in turn the aforesaid banks raised claims to the tune of Rs. 442 Crores on OICL.
The CBI Spokesperson made it clear that on completion of investigation, CBI had filed a charge sheet.
It is reminded that the above findings are based on the investigation done by CBI and evidence collected by it. Under the Indian Law, the accused are presumed to be innocent till their guilt is finally established after a fair trial.
