Special Correspondent

Court directs State to provide necessary infrastructure

Centre directed to file affidavit within four weeks

Court order definitely a deterrent to fraudulent litigation, says Bench

CHENNAI: The Madras High Court has directed the CBI to investigate nine more cases of bogus insurance claim.

Passing interim orders on a writ petition, the First Bench, comprising the Chief Justice and Justice Prabha Sridevan, said the State should provide the necessary infrastructure for the investigation.

The Bench said on November 10, 2006, submissions were made to consider setting up of Insurance Frauds Offices/Bureaus to deal with insurance frauds. The Union Finance Secretary was directed to file an affidavit explaining the Centre’s stand. The insurance companies were given liberty to apply for reference of further cases to the CBI. The Centre was yet to file an affidavit.

The Bench directed the Centre to file the affidavit within four weeks. The Centre should also seriously consider setting up IFOs in view of the proliferation of such economic offences.

When the matter was taken up the CBI, in its status report, stated that out of the 20 cases earlier ordered for investigation it had filed the charge sheet in 15 cases.

CBI counsel N. Chandrasekharan sought a direction on the future course of investigation.

Insurance companies’ counsel Vijayaraghavan furnished a list of 427 cases where accident insurance claims cases had been withdrawn as “not pressed” in the wake of the CBI investigation.

The Bench said the order passed by the court had definitely been a deterrent to fraudulent litigation.

After counsel for the insurance companies furnished particulars of nine cases for further investigation, the Bench directed the CBI to investigate cases registered by the Perur, Namakkal, Dharmapuri, Tiruchengode, Sathuvachary and K.Paramathi police stations, the Adyar Traffic Wing and Traffic Investigation Wing, Central Coimbatore.

The matter was posted for June.