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ACB finds violation of norms in IFFCO TOKIO's insurance deal with J-K Bank

ANI | Updated: Jul 23, 2019 09:06 IST

Srinagar (Jammu and Kashmir) [India], July 23 (ANI): An insurance deal in violation of norms has been apparently made by the Jammu & Kashmir Bank with IFFCO TOKIO, in which a close relative of former chairman of the bank, Parvez Ahmed Nengroo, is employed, resulting in undue benefits to the said company, according to a source-based report received by the Anti Corruption Bureau.
A verification conducted into the matter revealed that J&K Bank had already entered into a venture with PNB Metlife Insurance company for sale of its insurance products in 2000, followed by similar nature of venture with Bajaj Allianz Insurance Company for sale and distribution of its non-life insurance products including health product in the year 2002, read a statement.
The verification further revealed that "due to the said insurance deal, the said beneficiary company has been conferred business of insurance in Srinagar and Anantnag at the cost of bank resources and that of Bajaj Allianz company Ltd which was already in arrangement with J&K Bank since 2002," the statement added.
In an initial probe, it was revealed that in the first quarter of financial year 2018-2019 (April to June), J&K Bank allegedly received a 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 the current financial year is to the tune of Rs. 88 lakh only, which is lower by Rs. 71 lakh. Therefore, a loss in the form of commission to J&K Bank Ltd has been caused, the statement said.
"By resorting to the acts of favouritism and abuse of official position as Chairman J&K Bank in connivance with MD IFFCO TOKIO General Insurance Company, his relative Asif Manzoor Beig was appointed in the said insurance company against annual salary package of Rs 19,28,886 which is 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," the statement read.
It has been further mentioned that the said accused beneficiary is serving as Chief Manager in IFFCO TOKIO General Insurance Company Srinagar office.
"In order to effect search of the office premises of IFFCO TOKIO General Insurance Company located at Chinar Complex Residency Road Srinagar Kashmir, a warrant was procured from the competent court of law. The search was conducted to seize incriminatory evidence related to the commission of the offence by the officers/officials of IFFCO TOKIO General Insurance Company Ltd," the statement added.
It further stated that the "aforementioned omissions and commissions on the part of Nengroo, the then Chairman of J&K Bank Ltd in furtherance of conspiracy hatched with officer/officials of IFFCO TOKIO General Insurance Company Ltd while executing an insurance deal with the said company in order to secure appointment of his close relative Asif Manzoor Beigh in the said company and others at the cost of J&K Bank resources constitute criminal misconduct under J&K P C Act 2006 and thus disclose commission of offences punishable under Section 5(1) (d) read with 5(2) J&K Prevention of Corruption Act and Section 120B of the RPC."
A case related to this matter stands registered in police station ACB Srinagar and further investigation is underway. (ANI)