Bangalore, Jan 14 (PTI) The CID has filed charge sheetagainst five persons, including a senior official of PowerCorporation of Karnataka Limited, for fraudulently investingRs 18 crore in two personal insurance policies that wereequity linked and causing loss of Rs 4.98 crore to PCKL.
Those against whom the charge sheet has been filedwere Srinivasa Naik, director (Commercial) of PCKL; then areamanager (Malleshwaram branch) of Bajaj Alliance Life InsuranceCompany Tusharkanth; then deputy area manager (Residency Road)of BALIC Rakesh Kumar Suri; and BALIC agents Vipin KumarBharadwaj and Muttuveni, a CID statement said.
On January 24, 2008, Naik violated norms and investedRs 18 crore belonging to PCKL with BALIC by getting assignedtwo personal insurance policies existing in the names ofTusharkanth and Suri assigned to PCKL, the CID said.
Despite knowing that documents like board resolutionand power of attorney should be collected while raisinginvestments from companies, Tusharkanth and Suri did not doso.
Further, even though initially Naik decided that hisinvestment shall be 50 per cent in cash plus fund and 50 percent in equity plus fund, the investment actually varied from80 to 100 per cent in equity plus fund and, as a result, overa period of time the investment got eroded.
When it was finally closed on March 20, 2009, afterthe matter went to the notice of the Board, the value ofinvestment dipped to Rs 13.02 crore thereby causing loss of Rs4.98 crore to PCKL.
Bharadwaj and Muttuveni received one per centcommission -- Rs 18 lakh -- in the bargain.
Investigation on the involvement of other topofficials of BALIC Kamalesh Goyal, P R K Rao and RajeshVishwanath could not be completed as the same has been stayedby the High Court.