A special Central Bureau of Investigation (CBI) court in Indore has sentenced 12 former officials of a public sector general insurance company to four years rigorous imprisonment (RI) in a Rs 39.34 lakh scam that took place 26 years ago.
The court also imposed a fine of Rs 10,000 each on the convicts, former employees of the New India Assurance Company Ltd, while delivering the judgement recently, a CBI release said on Thursday.
Seven other accused, including a divisional manager, died during the trial of the case, it said.
A CBI probe revealed all the accused persons, acting in connivance with each other, extended undue benefits to the tune of Rs 39.34 lakh to 36 insurance agents, 11 development officers and others, the release said.
Their actions caused loss to the insurance company as well as insured members of primary agricultural cooperative societies, it said.
According to the release, the CBI had registered an FIR (first information report) in 1997 in connection with the scam that took place in the Ujjain division of the New India Assurance.
