Recently, the division bench of Justices Sanjiv Khanna and S.V.N. Bhatti, instructs State governments to submit current status reports regarding fraudulent claims and the measures implemented in response.

The Court, also directed the State governments to inform the Court about the formation of special investigation teams (SITs).

Further, the Court also mandated the Bar Council of each state to submit status reports, disclosing the resolution or pending status of complaints. Lastly, insurance companies were also instructed to furnish comprehensive status reports, including detailed information about fraudulent claim cases.

Case Brief -

In the said matter, an appeal was arisen from the challenged order of the Allahabad High Court, dated October 07, 2015. In this order, the High Court noted a significant number of fraudulrnt claims. Given the involvement of multiple departments scattered across various locations, the Court deemed it imperative to establish a Special Investigation Team (SIT) and entrusted it with the task of investigating all cases where fraudulent transactions had come to its attention.

Back in 2017, the Supreme Court refused to interfere with the impugned order. Significantly, the Court endorsed the High Court's decision to establish a Special Investigation Team (SIT), recognizing the gravity of the fraudulent activities involved.

Further, the Supreme Court recognized the importance of determining whether similar situations exist in other districts and states. Therefore, it decided to address this matter for the stated purpose of exploring the possibility of issuing guidelines to prevent the submission of false and contrived cases.

To this, notices were issued to all States/Union Territories and insurance companies, seeking their input on measures to eliminate the filing of fraudulent cases and proposing remedial actions.

During the hearing in 2021, the  SIT had informed the Court that at least 92 criminal cases were registered from 2015 to 2021 in Uttar Pradesh and the Court was further informed that in 55 of those 92 cases, 28 lawyers have been arraigned as accused. 

“A total 92 criminal cases in various Districts have been registered till date, of which, 28 advocates have been named as accused persons in 55 cases. Charge sheets against 11 advocates in 25 cases have been forwarded to the concerned trial Court till date,”

Yesterday, during the hearing, Justice Khanna instructed the counsel representing the High Courts to seek guidance on this matter and specified that the High Courts must submit their compliance reports within six weeks from today. The case is scheduled for its next hearing in January 2024.

Case Title: SAFIQ AHMAD vs. ICICI LOMBARD GENERAL INSURANCE CO. LTD