The said policies were underwritten by Mahdubhai Patel who placed these policies under the Brokers Code of the Brokers M/s Ivory Insurance Brokers and M/s Safeway Insurance Brokers by using his own user-id and password
FinTech BizNews Service
Mumbai, February 27, 2025: The Special Judge for CBI cases, Court No. 02 Ahmedabad has convicted/sentenced five accused including Shri Madhusudan B Patel, then Divisional Manager, United Insurance Comoany Lyd(UIICL), a central public sector insurance company, Ahmedabad; Shri Pankaj Gupta, Managing Director of M/s. Ivory Insurance Broker Pvt. Ltd; & Shri Inderjot Singh, Director of M/s. Safeway Insurance Broker Pvt. Ltd to 5years’ Rigorous Imprisonment with total fine of Rs 5.91 crore including fine of Rs 5.52 crore imposed on two accused firms namely, M/s. Ivory Insurance Broker Pvt. Ltd and M/s. Safeway Insurance Broker Pvt. Ltd. in a case related to fraudulent payment of insurance policies brokerage, as per the press release issued by the CBI.
CBI registered a case on 06.02.2012 against accused Shri Madhusudan B Patel, then Divisional Manager, UIICL, Ahmedabad; M/s. Ivory Insurance Broker Pvt. Ltd; M/s. Safeway Insurance Broker Pvt. Ltd. & unknown others on allegations of issuing various policies related to insurance and causing loss to govt ex-chequer and gain to accused.
It was revealed during investigation that accused public servant Madhusudan B Patel, then Divisional Manager, UIICL, Ahmedabad while working in Divisional office-06, UIICL, Ahmedabad during March 2007 to Nov 2010 had issued various Group Janta Personal Accident Policies as co-insurance business to the Directorate of Insurance, Government Insurance Fund (GIF), Government of Gujarat. The said policies were underwritten by Shri Mahdu Bhai Patel who placed these policies under the Brokers Code of the Brokers M/s Ivory Insurance Brokers and M/s Safeway Insurance Brokers by using his own user-id and password. Gujarat Insurance Fund (GIF) had placed the said policies directly with UIICL and had not given any mandate letter to any brokers and the said brokers were not authorized. Thus, brokerage of Rs. 2,69,14,727/- was released, in violation of applicable guidelines causing wrongful loss to the UIICL and wrongful gain to the private brokers.
Chargesheet was filed by CBI on 07.12.2012 against accused including those accused who were convicted and sentenced by the Court.
During trial, 20 prosecution witnesses were examined and relied on 61 documents/ exhibits in support of the charges against the accused persons.
The Court, after trial, found accused guilty and sentenced them accordingly.
