Mumbai: The economic offences wing (EOW) arrested an agent of Life Insurance Corporation of India for cheating an Andheri-based diamond trading firm.
“The accused, Chetan Desai (59), was picked up after Star Gold Diamond Pvt Ltd lodged a complaint,” said assistant police commissioner Vasant Dhoble.
The firm discovered financial irregularities to the tune of Rs 89 lakh. The firm, which has more than 300 employees, would take out insurance policies for new staffers.
“Desai offered his services to the firm. He would get 35% of the total premium on every new insurance policy availed. The policies were valid for a year. If the firm renewed the policy, then Desai would receive 5% commission,” Dhoble added.
Between 2010 and 2011, the firm tasked Desai with finishing the formalities on their behalf.
In 2013, Desai, who had a record of the names and details of the firm’s employees, forged documents to process new policies instead of renewing them. “The accused pocketed 35% commission although the firm was entitled to pay only 5%,” an official added. The fraud came to light after some employees approached the insurance company for loans. “They informed their employer and blew the whistle on Desai. The firm confronted Desai and later lodged an FIR,” he added. Desai had been associated with the insurance company for over three decades. He has been remanded in police custody.
The Times of India, March 7, 2014