CBI FILES A CHARGE SHEET AGAINST THE THEN CMD, ORIENTAL INSURANCE COMPANY LTD.; MD OF A PRIVATE AIRLINE AND OTHERS IN AN ALLEGED FRAUD CASE

Press Release
New Delhi , 05.11.2012

            The Central Bureau of Investigation has filed a charge sheet in the Court of Special Judge, Tis Hazari Courts, Delhi against the then CMD, then GM, then two DGMs all of Oriental Insurance Company Ltd., New Delhi; A Chennai based private Airline and the then MD of the said Airline U/s 120-B r/w 420 of IPC and Sec. 13(2) r/w (13)(1)(d) of PC Act, 1988.

 

            CBI registered the case on 04-07-2011. It was alleged that the then CMD, Oriental Insurance Co. Ltd. (OICL), in criminal conspiracy with Managing Director of a private Airline based at Chennai had allegedly shown favour to the said private Airline in getting 220 Credit Insurance Policies issued during the period 2005 to 2010. The said Credit Insurance Polices were used by the said private Airline as security for obtaining multiple bank guarantees from Public Sector banks viz. SBI, Indian Bank, Andhra Bank, Bank of India and IDBI to cover its transactions with State owned oil companies. The credit risk was alleged to have been accepted by OICL without analyzing the financials and taking into the account the credit ratings of the company against the established norms and procedures. On default by the said private Airline, the oil companies invoked the bank guarantees and in turn the aforesaid banks raised claims to the tune of Rs. 442 Crores(approx) on OICL.

 

            On completion of investigation, CBI filed a chargesheet.

 

            The public is reminded that the above findings are based on the investigation done by CBI and evidence collected by it. Under the Indian Law, the accused are presumed to be innocent till their guilt is finally established after a fair trial.

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