CBI court jails LIC assistant 10 years in ₹6.37 crore Lucknow fraud
Synopsis
A Lucknow CBI court has handed a former LIC assistant a 10-year prison term for masterminding a ₹6.37 crore fraud spanning four years — forged vouchers, ghost policyholders, and diverted public funds. The verdict closes a case that took over 12 years from registration to conviction, a sobering reminder of how long financial crime prosecutions can take in India.
Key Takeaways
Pankaj Saxena , former Higher Grade Assistant at LIC's Transgomti Branch , Lucknow, sentenced to 10 years RI and fined ₹5 lakh .
Co-accused Prem Shankar Upadhyay , Rekha Upadhyay , and Manish Saxena each sentenced to 3 years RI and fined ₹1.25 lakh .
Fraud involved forged vouchers and cheques for non-existent policyholders, causing a loss of ₹6,37,66,660 to LIC between 2006 and 2010 .
CBI registered the case on 13 August 2012 ; charge sheet filed on 21 August 2014 ; verdict delivered on 30 September 2026 .
Separately, a WCL Senior Overseer was arrested for allegedly demanding a bribe of ₹50,000 linked to a ₹25,35,693 contract for drinking water infrastructure at Pirwa village .
A CBI special court in Lucknow on 30 September 2026 convicted and sentenced Pankaj Saxena, a former Higher Grade Assistant at the Life Insurance Corporation of India (LIC)'s Transgomti Branch in Jankipuram, to 10 years of rigorous imprisonment (RI) and a fine of ₹5 lakh in a fraud case involving approximately ₹6.37 crore in diverted public funds. Three private co-accused received three-year jail terms each in the same ruling.
The Conviction and Sentences
Along with Saxena, the court convicted three private individuals — Prem Shankar Upadhyay, Rekha Upadhyay, and Manish Saxena — each sentenced to three years of RI and a fine of ₹1.25 lakh. The sentences follow a trial that began after the Central Bureau of Investigation (CBI) filed a charge sheet on 21 August 2014.
How the Fraud Was Carried Out
According to prosecution records, between February 2006 and August 2010, the accused allegedly conspired to prepare forged payment vouchers and cheques in the names of fake and non-existent policyholders. The funds were fraudulently diverted from LIC, resulting in a total financial loss of ₹6,37,66,660 to the state-owned insurer. The CBI registered the original case on 13 August 2012 following a complaint lodged by the Chief Manager of LIC's Transgomti Branch.
Background and Investigation Timeline
The case spans over a decade from the initial fraudulent transactions to the final verdict. The CBI's investigation concluded with a charge sheet naming Saxena alongside other LIC officials and private individuals. The prolonged trial — stretching roughly 12 years from case registration to conviction — reflects the complexity of financial fraud prosecutions in India's judicial system. Notably, this verdict arrives at a time of heightened scrutiny on public-sector financial institutions.
Separate Bribery Case Against WCL Official
In an unrelated development, the CBI on 30 September 2026 arrested a Senior Overseer (Civil) of Western Coalfields Limited (WCL), Umred Area, in an alleged bribery case. The officer, posted at Gokul Murpar Sub Area, was accused of demanding a bribe of ₹50,000 — purportedly two per cent of a bill worth ₹25,35,693 — for releasing payment on a contractor's third bill. The contracted work involved constructing two borewells and installing submersible pumps, along with a distribution pipeline, to ensure drinking water supply at the rehabilitation site of Pirwa village.
Both cases underscore the CBI's ongoing enforcement actions against alleged corruption within public-sector entities across India.
Point of View
Yet the pace of justice remains a structural weakness that bad actors continue to exploit.
NationPress
1 Oct 2026
Frequently Asked Questions
Who is Pankaj Saxena and what was he convicted for?
Pankaj Saxena was a Higher Grade Assistant at LIC's Transgomti Branch in Jankipuram, Lucknow. He was convicted by a CBI special court on 30 September 2026 for conspiring to forge payment vouchers and cheques in the names of fake policyholders, fraudulently diverting approximately ₹6.37 crore from LIC between 2006 and 2010.
What sentence did the court hand down in the LIC fraud case?
Pankaj Saxena was sentenced to 10 years of rigorous imprisonment and fined ₹5 lakh. Three private co-accused — Prem Shankar Upadhyay, Rekha Upadhyay, and Manish Saxena — each received three years of rigorous imprisonment and a fine of ₹1.25 lakh.
How much money was lost in the LIC Transgomti Branch fraud?
The fraud caused a financial loss of ₹6,37,66,660 — approximately ₹6.37 crore — to the Life Insurance Corporation of India. The money was siphoned by creating forged vouchers and cheques against non-existent policyholders.
When did the CBI register the LIC fraud case and how long did the trial take?
The CBI registered the case on 13 August 2012, following a complaint by LIC's Chief Manager at the Transgomti Branch. A charge sheet was filed on 21 August 2014, and the verdict was delivered on 30 September 2026 — over 12 years after registration.
What is the separate WCL bribery case mentioned alongside the LIC verdict?
On 30 September 2026, the CBI arrested a Senior Overseer (Civil) of Western Coalfields Limited's Umred Area for allegedly demanding a bribe of ₹50,000 — two per cent of a ₹25,35,693 bill — for clearing a contractor's payment. The contract involved constructing borewells and a drinking water pipeline at the Pirwa village rehabilitation site.
