HC asks insurance co to pay power firm Rs 5 cr

HC asks insurance co to pay power firm Rs 5 cr

The State-owned Power Company of Karnataka Limited (PCKL) has been able to recover about Rs five crore which was illegally invested in a private insurance company by one of its officials.

Hearing a petition by PCKL, the High Court directed Bajaj Allianz life insurance company to pay Rs 4,98,23,500 to PCKL. The amount was invested in the company in 2008 by then Director (Commercial) of PCKL, S Srinivasa Naik. The company was also directed to refund the agent commission of Rs 18 lakh to PCKL.

Justice B V Pinto, who heard the matter, ruled in favour of PCKL. Naik had transferred Rs 18 crore to Bajaj Allianz on January 25, 2008, without authority and approval of the board of directors, a release stated.

The investment was in the nature of topping up two existing personal insurance policies of two senior executives of the company (Bajaj Allianz), linked to equity market. The PCKL had dismissed Naik from service when the matter came to light.