NGO booked for insurance fraud in Srinagar
Srinagar, Feb 01: Crime Branch (CB) Kashmir has booked a non-governmental organization (NGO) for cheating people on the pretext of providing insurance cover to them.
A statement by CB Kashmir said it received communication which inter-alia reveals that an NGO under the name “Regional Social Welfare and Rural Development” planned to provide insurance cover to residential properties.
It said that the people were asked to register as members against a fixed amount of Rs 1000 per member. “However, the said NGO was not authorized to offer insurance cover to individuals/property nor was mandated to collect money from people or so-called members,” said the statement.
During the course of enquiry, CB said, it came to fore that a NGO under the name and style of the NGO with its regional office H.No. 504 Indra Nagar, Srinagar, in violation of the laid down terms and conditions of its registration, indulged in malpractices and collected huge money from gullible people in the name of providing insurance cover to their residential houses, etc.
“It also came to fore that two bank accounts were operated by the directors of said NGO at J&K Bank Polo View Srinagar, Canara Bank Chanapora Srinagar and an amount of Rs 22,27,355 and Rs 16,98,950 respectively were found to have been deposited/credited in these accounts, through various demand drafts by so-called members and an amount of Rs 39,21,946 was found withdrawn from these bank accounts from the amounts deposited,” the statement said.
It said this “substantiates that of the said NGO after hatching a criminal conspiracy, have in deceitful and fraudulent manner collected huge amounts from gullible people on the pretext of providing insurance cover to their residential houses/other property, but their houses were not insured and thereby said NGO cheated the people and grabbed their hard-earned money,” it added.