06 February 2012

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RIL NICL Scam Rs 273.12 crore CBI files chargesheet against Reliance Industries Limited National Insurance Company Limited

RIL NICL Scam Rs 273.12 crore CBI files chargesheet against Reliance
Industries Limited National Insurance Company Limited

Scam between 2002 to 2004

Year 2005 Complaint - The complaint said that or alleged irregularities in issuance of insurance policies - for coverage of default payments - by NICL to RIL.

Case or Investigation Started in year 2005 and CBI filed chargesheet on December 9, 2011.

CVC said that two MoUs were signed between the private telecom provider and the NICL, where terms deviating from the standard policy and favorable to the party were incorporated,"

Deviating means departure from what is prescribed or expected: not following rules and laws.
Different not as per law or policy.

On the basis of the MoUs, NICL issued two Special Contingency Policies (SCPs) from its Kalyan office.
CVC said officials of NICL's regional office in Mumbai and Kalyan branch committed "serious illegalities in connivance with officials of telecom provider which resulted into a wrongful loss of Rs 273.12 crore."

as per NICL circulars premium rates chargeable for laptops/mobile electronic equipments was to be between 1% and 1.5% but NICL officials did not follow the guidelines and fixed a low rate of 0.25%.

NICL also surrendered the basic right of the insurer to review and opt for cancellation the policy in case negative trends are noticed.

CVC said that a majority of subscribers under the default insurance cover for telecom services policy could not be located due of inaccurate addresses.
NICL officials with dishonest intention by abusing their official position, processed the bogus claims amounting Rs 120.60 crore lodged without proper verification

NICL officials abused their official position and processed bogus claims amounting to Rs 26.81 crore lodged by the private telecom provider without proper verification,
Loss of Rs. 26.81 Crore.

CBI found that the NICL officials violated internal circulars, no risk analysis was done nor there was "application of mind made by the officers of NICL.

according to a status report from the Central Vigilance Commission (CVC)
The Central Bureau of Investigation (CBI) has filed a chargesheet in a Mumbai court against Reliance Industries Limited (RIL) and four retired employees of National Insurance Company Limited (NICL), including a former CMD, under provisions of the Prevention of Corruption
Act for criminal conspiracy and other charges. The CBI has also sought prosecution sanction against five serving NI CL employees.

It caused wrongful loss totaling Rs 147.41 crore to NICL and wrongful gain to the private telecom provider.

Why Took 7 Years to complete investigation and file a chargesheet?

Result will come after 50 Years or 100 years or 10 years when majority witnesses and accused will be dead and all the files will be missing.

Reality views by sm –

Monday, February 06, 2012

Tags – RIL NICL Scam Corruption


dopdavid February 06, 2012  

oh jeez, thats just terrible -.-

Renu February 06, 2012  

Every year i see a news of some scam involving them, but nevr in the front page, but somewhere in the sides and then forgotten quickly..no journalist follows......

thats the reason I dont like or respect them.

dopdavid February 06, 2012  

wow these guys reputation and track record is horrible >.>

Bikram February 06, 2012  

so many crores of Rs scams a few days back it was some 200THOUSAND crores .. if there is so much money why is their still so much povrty i wonder..

So sad when big companies do such things when will enough be enough ...

sm,  February 06, 2012  

dopdavid, thanks.
Bikramjit, thanks.