Rs 250 crore insurance fraud: CEO arrested in Ranchi; 26 cases filed in Jharkhand, UP, Uttarakhand and Bihar

LUCKNOW: The Economic Offences Wing (EOW) of the Uttar Pradesh Police arrested Madhumita Kaur, director and chief executive officer (CEO) of B Care Company, from Ranchi, Jharkhand, in connection with an alleged fraud involving Rs 250 crore insurance policies and investment schemes. The accused was arrested from the Argora police station area in Ranchi in connection with an investigation linked to Case No 349/12 registered at Krishna Nagar police station in Lucknow.

The case is part of investigation No 1/16 being handled by the EOW. According to the investigating agency, a total of 26 cases had been registered against the accused and other persons associated with the company at various police stations in connection with the alleged fraud.

These cases are registered in UP, Uttarakhand, Bihar, and also Jharkhand. Kaur, wife of Gurjeet Kaur, is a resident of PP Compound, Gindpiri, Ranchi.

Following her arrest, the EOW obtained transit remand from a court in Ranchi and brought her to Lucknow for further legal proceedings. She was subsequently produced before a court in Lucknow.

According to the EOW, V-Care Multitrade Private Limited was registered in Delhi and Haryana in 2008-09. The company subsequently opened a regional office in Lucknow's Krishna Nagar area and allegedly attracted customers by promising lucrative benefits on insurance policies purchased from companies such as Reliance Life Insurance, HDFC Life Insurance and Aegon Life Insurance.

Investigators alleged that the company persuaded customers to purchase insurance policies by offering financial incentives and assurances of additional benefits. However, the company allegedly misappropriated the money invested by customers and later shut its offices before its operators went absconding.

Second-Year Premium Payments Used to Attract Customers The alleged scheme also relied on a referral-based model to expand its customer base. Under the arrangement, individuals who encouraged others to purchase insurance policies or helped enrol new customers were allegedly promised that the company would pay the second-year premium instalments on their behalf.

According to investigators, the promise encouraged more people to join the scheme and purchase insurance policies. However, the company allegedly failed to deposit the promised second-year premiums, leaving customers facing financial losses and potential difficulties in maintaining their policies.

The EOW suspects that the arrangement was used to attract more investors and generate commissions while the company allegedly misappropriated customers' funds and commission payments. Multiple Cases Registered Across Police Stations The EOW said the alleged fraud involved several people associated with the company and resulted in complaints being registered at different police stations.

A total of 26 cases were registered against the accused and other persons linked to the company, according to the agency. The investigation is focused on the alleged diversion of customers' money, the company's operating model and the roles of individuals responsible for managing its affairs You Can Also Check: Gold Rate in Lucknow | Silver Rate in Lucknow | Bank Holidays in Lucknow | Public Holidays in Lucknow | Lucknow AQI | Weather in Lucknow | Petrol Price in Lucknow | Diesel Price in Lucknow | CNG Price in Lucknow | LPG Price in Lucknow Stay updated with the latest Lucknow news.