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Allahabad HC Peers into Western UP's Sinister Insurance Scam During
In a riveting that peeled back layers of alleged fraud, the exempted 's Moradabad branch head from personal appearance while grappling with explosive claims of an organized gang preying on the dying. Justice Arun Kumar Singh Deshwal presided over , filed by Nawab Ali alias Nawabuddin, accused of cheating a widow out of half her late husband's Rs 9.6 lakh insurance payout.
The Widow's Payout and the Shadowy Intermediary
The case traces back to a life insurance policy from , ostensibly for a man on his deathbed. After his passing, Rs 9.6 lakhs was disbursed to his widow's account. But Rs 4.8 lakhs swiftly moved to the wife of the applicant, Mrs. Ruksi Anjum. Bank records, annexed to a compliance affidavit, revealed 49 additional Rs 10,000 withdrawals—suspicious ATM pulls hinting at deeper manipulation.
Prosecutors alleged the applicant controlled the widow's account via a SIM card in her name, linked for mobile banking. Yet, they couldn't pinpoint who made those withdrawals. The applicant countered he merely took "liaisoning money"—half the payout—for arranging the policy, claiming it covered his expenses.
Breaks Silence: Gangs, Threats, and Broken Probes
's counsel dropped a bombshell: an entrenched gang roams Western Uttar Pradesh, scouting deathbed victims, forging documents, and securing policies across insurers, including their own.
"There is a gang operating in Western U.P., which, after searching a person on deathbed, manipulated to obtain life insurance through different insurance company including the
Insurance Ltd.,"
the judgment quotes.
The company stressed no "process fees" are charged—directly rebutting the applicant's claim. They detailed post-policy safeguards: video call verifications, with physical checks if doubts arise. Yet, gang muscle intervenes—threatening investigators and lodging fake FIRs against insurers. Despite HDFC filing complaints,
"the
do not cooperate in such type of cases by conducting fair investigation to bring the culprit to justice."
Branch head Sri Pulkit Gupta appeared personally, apologizing via affidavit for a prior no-show due to an accident, and pledged future compliance.
State's Slip-Ups and the Court's Push for Answers
The Assistant Government Advocate (AGA) presented Sub-Inspector Kulveer Singh's affidavit but faltered on key queries: Who withdrew the Rs 10,000 chunks? Was the widow's statement recorded? Any HDFC insiders involved?
Justice Deshwal, unsatisfied, granted time for instructions and summoned the with records for .
Pivotal Quotes from the Bench
-
On the gang's :
"
... has also admitted this fact that there is a gang operating in Western U.P., which, after searching a person on deathbed, manipulated to obtain life insurance..."
-
HDFC's verification process :
"Sri Pulkit Gupta... submitted that for issuance of life insurance policy, no charge in the name of process fee was taken from the policy holder. He also submitted that after issuance of policy, verification through video call is also conducted..."
-
accountability gap :
"In most of the cases, the
do not cooperate... For that reason, this gang is being continuously operating and defrauding several insurance companies..."
-
Suspicious finances :
"Rs.4.8 lakhs were transferred in the account of wife of the applicant Mrs. Ruksi Anjum. Apart from this, there are several withdrawals of Rs.10,000 each 49 times..."
Adjournment with Teeth: Bail Hangs in Balance
The court excused Gupta's repeated appearances " " , signaling trust in his explanations. But the remains open, adjourned as "fresh" on March 25 at 10:00 AM. This directive compels deeper scrutiny of transactions, witness statements, and potential insurer complicity—potentially unraveling a fraud web plaguing insurers.
As Western UP's scam economy faces judicial glare, this hearing underscores vulnerabilities in insurance issuance amid alleged lassitude, promising ripple effects for policy vetting and fraud probes nationwide.
