Jaipur: Petition for CBI probe into LIC’s alleged advertisement ‘scam’

A petition has sought a CBI inquiry into alleged advertisement scam worth thousands of crores of rupees in the largest life insurance company of India - LIC. Acting on the petition by lawyer Sunil Kumar Singh, the division bench of Justice K S Jhaveri and Justice V K Vyas has issued notices to union home secretary Rajiv Gauba and chairman of LIC V K Sharma regarding Rs 5000 crore alleged advertisement scam in the LIC and sought their replies.

During the preliminary hearing, the division bench remarked that apart from CBI inquiry, it also has the option of setting up an inquiry commission. The petitioners had filed RTI application to know about LIC’s policy to release advertisements. The petition also sought information about who were given advertisements and the amount spent since 2013.

The LIC had replied that it did not have record of advertisement policy. It also refused to provide information about advertisement issued in the last five years.

The petitioner claimed that the LIC had invested in Nirav Modi’s company Gitanjali. It also alleged that the LIC also lost around Rs 1400 crore in the PNB scam.

The petition stated that as per 59th annual report of the LIC, it had spent Rs 44762 lakh on advertisement and publicity. “Under chairman V K Sharma, scams worth thousands of crore have taken place,” the petition said. It also alleged that public money is being misused to favour near and dear ones through grant of advertisements.

The claim

The petitioner claims that the LIC has invested in Nirav Modi’s company Gitanjali. It also alleged that the the insurance company has also lost around Rs 1400 crore in the PNB scam.