March 24, 2018 5:25:06 am
The Central Bureau of Investigation has registered a case against Deccan Chronicle Holdings Ltd (DCHL) and its chairman T Venkatram Reddy for allegedly causing a Rs 30.54-crore loss to United India Insurance Co Ltd (UIIC), officials said on Friday.
In an FIR, the CBI has named two Mumbai-based private firms CARE Rating Ltd and Infrastructure Development Finance Co Ltd, and two former officials of UIIC — deputy general manager A Balasubramanian and chief manager K L Kunjilwar.
The UIIC officials allegedly made suspicious investments in “short-term unsecured redeemable non-convertible debentures, issued by DCHL in 2011, in violation of regulations,” officials said. According to the FIR, Balasubramanian and Kunjilwar had entered into a criminal conspiracy to cheat the UIIC and abused their official positions as public servants by making the investments which was not repaid by the DCHL, causing a loss of Rs 30.54 crore.
“It is revealed that UIIC was investing the premium collected from the policy holders during the ordinary course of business in the form of shares, debentures, commercial papers, term loans, etc, in the public and private sector companies, as per the investment policy guidelines, based on the rules of Regulatory and Development Authority of India (IRDA),” the FIR said.
These investments are based on the rating made by Security and Exchange Board of India (SEBI) approved rating agency CARE Rating Ltd, it said.
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