₹6.37 Crore LIC Fraud: 10-Year Jail Term for Assistant, 3 Years for Three Co-Accused
(Judicial Quest News Network)
Lucknow, October 1, 2026: In a significant financial-fraud conviction, a CBI Court in Lucknow has sentenced a former Higher-Grade Assistant of the Life Insurance Corporation of India (LIC) to 10 years’ rigorous imprisonment (RI) in a case involving the fraudulent diversion of approximately ₹6.37 crore of LIC funds through allegedly forged payment vouchers and cheques issued in the names of fictitious or non-existent policyholders.
The Court, on September 30, 2026, convicted Pankaj Saxena, then serving as Higher Grade Assistant at LIC’s Transgomti Branch, Jankipuram, Lucknow, along with three private persons Prem Shankar Upadhyay, Rekha Upadhyay and Manish Saxena.
Saxena has been sentenced to 10 years’ rigorous imprisonment with a fine of ₹5 lakh, while the three private convicts have each been sentenced to three years’ rigorous imprisonment and a fine of ₹1.25 lakh.
Alleged conspiracy unfolded through forged payment instruments
The case traces its origin to a complaint lodged by the Chief Manager of LIC’s Transgomti Branch, following which the Central Bureau of Investigation registered the case on August 13, 2012.
According to the CBI case, the fraudulent transactions were carried out during the period from February 2006 to August 2010, pursuant to a conspiracy among the accused.
The prosecution case was that forged payment vouchers and cheques were prepared in the names of fake or non-existent policyholders and were thereafter used to fraudulently divert LIC funds.
The alleged modus operandi resulted in a financial loss of approximately ₹6,37,66,660 to LIC.
The case thus involved not merely a disputed financial transaction, but allegations concerning the manipulation of official records and the use of fabricated payment instruments to facilitate the diversion of institutional funds.
CBI Investigation Culminated in Chargesheet
Following registration of the case, the CBI undertook a detailed investigation into the transactions and the role allegedly played by the accused persons, including officials associated with the LIC Transgomti Branch.
Upon completion of the investigation, the agency filed its chargesheet on August 21, 2014, bringing the accused before the trial court to face prosecution.
The matter thereafter proceeded to trial, during which the prosecution sought to establish the alleged conspiracy, preparation and use of forged payment vouchers and cheques, identification of fictitious policyholders and consequent diversion of LIC funds.
Court Records Conviction After Conclusion of Trial
After completion of the trial and consideration of the evidence, the CBI Court found the four accused guilty and proceeded to determine the sentences.
The sentencing order reflects a marked distinction in the punishment awarded to the principal public servant and the three private persons.
While Pankaj Saxena was sentenced to 10 years’ rigorous imprisonment, the three private accused Prem Shankar Upadhyay, Rekha Upadhyay and Manish Saxena were each awarded three years’ rigorous imprisonment.
The Court additionally imposed a ₹5 lakh fine on Saxena, whereas each of the three private convicts was directed to pay a ₹1.25 lakh fine.
A Decade-Long Prosecution Ends in Conviction
The case, registered in 2012 and charge sheeted in 2014, culminated in conviction more than a decade after the alleged financial irregularities came to light.
The prosecution was founded on allegations that between February 2006 and August 2010, the accused persons acted in concert to generate fraudulent payment documentation and divert LIC funds through transactions purportedly relating to persons who, according to the CBI case, were either fictitious or non-existent policyholders.
The reported judgment brings the criminal proceedings against the four convicted persons to a decisive stage, with the trial court having recorded their guilt and imposed substantive terms of imprisonment.
Public Trust and Institutional Safeguards
The case assumes significance against the broader legal principle that financial institutions handling public-facing funds are expected to maintain stringent safeguards against fraudulent transactions and manipulation of official records.
Where criminal prosecution establishes, upon trial, that official access or institutional position was abused in furtherance of a conspiracy to fabricate financial instruments and divert funds, the consequences extend beyond monetary loss to the integrity of the institutional process itself.
In the present matter, the CBI’s prosecution culminated in the conviction of the LIC official and three private persons, with the Court imposing substantial custodial sentences after conclusion of the trial.
