LIC Assistant Sentenced to 10 Years in ₹6.37 Crore Fraud Case; Three Others Get 3 Years
Lucknow | 30 September 2026: A 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 a fraud case involving the alleged diversion of more than ₹6.37 crore of LIC funds.
The court convicted Pankaj Saxena, who was serving as a Higher Grade Assistant at LIC’s Transgomti Branch in Jankipuram, Lucknow, along with three private individuals—Prem Shankar Upadhyay, Rekha Upadhyay and Manish Saxena.
Pankaj Saxena has been sentenced to 10 years of rigorous imprisonment and fined ₹5 lakh. The three private accused have each been sentenced to three years of rigorous imprisonment and fined ₹1.25 lakh.
The case dates back to allegations of fraudulent activities carried out between February 2006 and August 2010. According to the CBI, the accused allegedly acted together as part of a conspiracy to prepare forged payment vouchers and cheques in the names of fake or non-existent policyholders.
The agency alleged that these forged documents were then used to fraudulently divert money belonging to LIC, causing a financial loss of approximately ₹6,37,66,660.
The matter came to the attention of the investigating agency after the Chief Manager of LIC’s Transgomti Branch lodged a complaint. Based on the complaint, the CBI registered the case on 13 August 2012 and began investigating the alleged financial irregularities.
During the investigation, the agency examined the transactions, documents and procedures allegedly used to divert LIC funds. The probe also looked into the role of officials associated with the Transgomti Branch and the private individuals allegedly involved in the scheme.
After completing its investigation, the CBI filed a chargesheet on 21 August 2014 against the accused persons, including officials of LIC’s Transgomti Branch.
The case subsequently went through trial before the CBI court in Lucknow. After considering the evidence and material presented during the proceedings, the court found the four accused guilty and pronounced their sentences on 30 September 2026.
The court’s decision brings a significant development in the long-running fraud case, which originated from alleged irregularities dating back more than a decade. The sentences handed down to the accused reflect the seriousness with which the court viewed the fraudulent diversion of funds from a major public-sector insurance institution.
The case also highlights the importance of proper financial controls and verification procedures in handling insurance payments and policy-related transactions. The alleged use of forged vouchers and cheques in the names of non-existent policyholders was central to the CBI’s case.
The conviction followed a lengthy legal process involving investigation, filing of the chargesheet and trial before the competent court. The accused have been sentenced in accordance with the court’s findings after examination of the evidence placed before it.
The CBI continues to pursue cases involving financial fraud, corruption and misuse of official positions, particularly where such alleged wrongdoing results in significant losses to public institutions and ultimately affects public money.
News source: Information for this article was gathered from a variety of reliable news outlets.
