Mumbai: ED books husband-wife held in Rs 170 cr insurance fraud case; probing money laundering aspect

The Enforcement Directorate (ED) officials have registered an Enforcement Case Information Report (ECIR) into the alleged siphoning of Rs 170 crores from various accounts of United India Insurance Company by an employee couple, the agency officials informed on Monday. The agency is probing the money laundering aspect in the case.

The ED had registered an offence on the basis of an FIR filed by the Mumbai Police's Economic Offences Wing (EOW).

In June last year, the EOW had arrested Khushal Singh, assistant manager in the accounts department of the United India Insurance company and his wife Neelam also an assistant manager with the said insurance company, for allegedly siphoning off at least Rs 170 crore from the company's accounts to other accounts, thereby causing wrongful gain.

According to the police, the company has an account with a leading private bank and Singh was the signatory authority to this account.

The company came across some suspicious transactions and found that money was being siphoned from the company's accounts to his personal accounts and from there the money was again diverted to various other accounts. Further enquiry by the company revealed the role of Khushal in the said crime, police said.

Jaideep Sinha, deputy general manager of United India Insurance, had at that time filed a complaint against Khushal with the Marine Drive police. The case was later transferred to the EOW.

Khushal Singh has properties in NCR and the ED officials had carried out searches in NCR in connection with the case, the agency sources said.

The couple was arrested by the EOW under section 409 (criminal breach of trust by a public servant, or by banker, merchant or agent) and section 120B (punishment of criminal conspiracy) of the Indian Penal Code.