LIC Assistant Gets 10-Year Rigorous Imprisonment in Rs 6.37 Crore Fraud Case; Three Others Sentenced to 3 Years
Lucknow, September 30, 2026: The CBI Court in Lucknow has sentenced a former Higher Grade Assistant of the Life Insurance Corporation of India (LIC) to 10 years of rigorous imprisonment (RI) in connection with a fraud case involving the alleged diversion of LIC funds worth approximately Rs 6.37 crore.
The court delivered its judgment on September 30, 2026, convicting four accused persons in the case. The convicts include Pankaj Saxena, who was serving as the then Higher Grade Assistant at LIC’s Transgomti Branch in Jankipuram, Lucknow, and three private individuals — Prem Shankar Upadhyay, Rekha Upadhyay and Manish Saxena.
LIC official gets 10-year sentence
The court sentenced Pankaj Saxena to 10 years of rigorous imprisonment and imposed a fine of Rs 5 lakh.
The three private accused — Prem Shankar Upadhyay, Rekha Upadhyay and Manish Saxena — were each sentenced to three years of rigorous imprisonment and fined Rs 1.25 lakh.
The convictions came after a lengthy legal process arising from allegations of fraud and criminal conspiracy involving the handling and disbursement of LIC funds.
Fraud allegedly carried out through forged documents
According to the CBI case, the alleged fraud took place between February 2006 and August 2010. During this period, the accused allegedly acted in conspiracy with one another and prepared forged payment vouchers and cheques in the names of fake or non-existent policyholders.
The allegedly forged documents were then used to facilitate the diversion of LIC funds. The investigation estimated the total financial loss caused by the alleged fraudulent activities at approximately Rs 6,37,66,660, or around Rs 6.37 crore.
The case came to light following a complaint lodged by the Chief Manager of LIC’s Transgomti Branch, Jankipuram, Lucknow. Based on the complaint, the CBI registered the case on August 13, 2012, and began investigating the alleged financial irregularities.
CBI filed chargesheet in 2014
Following a detailed investigation, the CBI filed a chargesheet before the competent court on August 21, 2014. The chargesheet named the accused persons and also examined the alleged involvement of officials connected with the LIC branch.
The prosecution presented evidence relating to the alleged preparation and use of forged payment vouchers and cheques, as well as the manner in which LIC funds were allegedly diverted through the fraudulent transactions.
After completion of the trial and consideration of the evidence and arguments presented before it, the CBI Court, Lucknow, convicted all four accused and pronounced their respective sentences.
The judgment brings a significant development in a case that dates back more than a decade and highlights the serious consequences of financial fraud involving public institutions. The case also underlines the importance of internal controls and verification mechanisms in preventing the misuse of official positions and fraudulent financial transactions.
The convictions and sentences have been pronounced by the court following the trial and are subject to applicable legal remedies.
News source: Information for this article was gathered from a variety of reliable news outlets.
