Mumbai: Couple arrested for 
Rs 129 cr-fraud at insurance firm

The Economic Offences Wing (EOW) of the Mumbai Police has arrested an assistant manager of the United India Insurance company for wrongful gain by allegedly siphoning off at least Rs 129 crore from the firm to other accounts. The police have also arrested the wife of the accused for her alleged conspiracy.

Those arrested have been identified as Khushal and Neelam Singh. The couple was staying in the office quarters at Bhulabhai Desai Road.

According to the police, Khushal, 37, was working as an assistant manager in the accounts department of the insurance company, which has an account with a leading private bank. Singh was the signatory authority for this account. An EOW official said that the company came across some suspicious transactions and found that money was being siphoned off to personal accounts of the accused. “The money was again diverted to various other accounts. Further inquiry by the company revealed Khushal’s role,” the official said.

Jaideep Sinha, deputy general manager of United India Insurance, had lodged a complaint against Khushal Singh with the Marine Drive police. The case was later transferred to the EOW on June 17. The police claimed that Singh and his wife went into hiding after the case was registered.

The official said, “Initially the siphoned amount known was Rs 8 crore. Further scrutiny of suspicious transactions made by the company revealed that the total misappropriation was of Rs 129 crore. Singh has properties in the National Capital Region. We are probing if the amount was used to purchase any of these properties.”

After the case was registered, a team was formed under Joint Commissioner of Police (EOW) Niket Kaushik, and on receipt of specific information the couple was traced in Pune and apprehended on Monday. They were produced before a court that remanded them to EOW custody till July 5.

The couple has been arrested 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.

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