The Central Bureau of Investigation (CBI) raided 11 places in the Madhya Pradesh capital on Tuesday in connection with an alleged Rs 2.4 crore fraud at one of the branch offices of the Life Insurance Corporation of India (LIC).
The raids were conducted at houses and offices of four LIC officials, including Pradyuman Singh Bhadoria (the higher grade assistant at LIC-Branch No. 4 office), besides offices and houses of three directors of Mechmen Motors.
The raids which started at 7.30 am were continuing till the filling of this news report.
The raids come a month after the investigation agency had lodged a case of cheating, fraud, criminal conspiracy under Sections 420, 120B and 511 of IPC, besides provisions of the Prevention of Corruption Act 1988 in the matter.
According to CBI sources, a regular case was lodged in the matter in June 2016.
Investigations have revealed that public funds of Rs 2.4 crore at LIC Branch No: 4 office in Bhopal were siphoned off by four LIC officials into the bank account of Mechmen Motors using National Electronic Funds Transfer (NEFT) route in March this year.
The CBI had lodged a case in the matter based on information gathered from its own sources. The LIC too had detected the fraud through an internal probe and a significant chunk of the money has been recovered.
The money was meant for paying commission to LIC agents, making insurance policy maturity payments and other important expenditure.