The Indian Central Bureau of Investigation (CBI) has commenced investigation into devaluation of penalty on Reliance General Insurance by the officials of Insurance Regulatory and Development Authority (IRDA) in 2009.
CBI has included Reliance General Insurance and unknown officials of the authority in its enquiry.
CBI spokesperson Kanchan Prasad was quoted by the Press Trust of India as saying that the agency has registered a preliminary enquiry against unknown officials of IRDA and a private company on allegations that a penalty of INR2m was imposed on the Reliance General Insurance instead of $2.85bn for 3.5 lakh instances of violations of IRDA guidelines.
As per the CBI sources, the then chairman J Hari Narayan who signed the order has already been questioned about the issue. The CBI now intends to find out, if there was a mala fide or a quid pro quo in the order.
A Reliance General Insurance spokesperson said the allegation is baseless, unfounded and devoid of any legal foundation.