A special Central Bureau of Investigation (CBI) court has sentenced Anand Prakash, a 69-year-old managing director of Nigeria-based Prestige Assurance Limited, to five years in prison for allegedly misappropriating funds. Prestige Assurance, a subsidiary of India’s New India Assurance Company (NIA), was the focus of the case following a complaint from the NIA’s general manager, which led the CBI to register charges against Prakash.
The court found that Prakash fraudulently approved an internal memo authorizing himself ₹1.6 crore under the “parting gift and pension” category, despite being ineligible for the benefit. According to the prosecution, Prakash was neither part of a contributory pension scheme nor had a retirement savings account with a pension fund administrator.
The court ruled that this amounted to an abuse of his position, as funds were allegedly credited to his account without the required approval from the board of directors.
Prakash’s defense argued that since Prestige Assurance is a separate legal entity operating under Nigerian law, it could not be considered a government entity or an Indian company. The defense also contended that Prakash was not performing a public duty and that the Ministry of Department of Personnel and Training, not the Ministry of Home Affairs, should have provided the sanction for prosecution.
The court, however, noted that the majority of Prestige Assurance’s board comprises representatives from NIA, which holds a 67% stake in the company. Special sessions judge Amit Kharkar stated that Prakash had knowingly bypassed board authorization, misusing his position for personal gain. The court concluded that Prakash’s actions represented an abuse of authority by a public servant and constituted corrupt practices.
Source: Hindustan times
