Fake deaths & forged papers: EOW busts PMJJBY ‘scam’ in Gwalior belt

Bhopal: The Economic Offences Wing (EOW) has uncovered an alleged organised insurance fraud operating across the Gwalior–Chambal division, in which forged death certificates were allegedly used to siphon off insurance proceeds under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), causing losses running into crores of rupees to the exchequer.The EOW has registered a criminal case against Deepmala Mishra, Jignesh Prajapati, Naveen Mittal and Pooja Kumari, along with then officials of the Birth and Death Registration Branch of the Gwalior Municipal Corporation and employees of Union Bank of India's Sheopur branch. The case follows a complaint alleging that organised gangs were falsely declaring living persons as dead — and in some instances showing dead persons as alive — to fraudulently claim insurance amounts.
According to investigators, forged death certificates and other fabricated documents were prepared in connivance with bank and civic body staff. Using these documents, the accused allegedly impersonated nominees and withdrew insurance payouts under PMJJBY, a central govt social security scheme meant for economically weaker sections. Under PMJJBY, individuals aged 18 to 50 years can avail life insurance cover of Rs 2 lakh on payment of an annual premium, with the insured amount payable to the nominee in the event of the policyholder's death.During a preliminary probe covering the period between Jan 2020 and Dec 2024, the EOW scrutinised claims processed by eight insurance companies operating under PMJJBY in the Gwalior–Chambal division. These include LIC of India, SBI Life Insurance, ICICI Prudential Life Insurance, United India Insurance Company, Axis Max Life Insurance, Star Union Dai-ichi Life Insurance (SUD), Indian AXA Life Insurance and New India Insurance Company.In Sheopur district alone, Star Union Dai-ichi Life Insurance had received 50 claim cases. Investigation into six cases has been completed so far. While one claim was found genuine, five claims were allegedly fraudulent. In these five cases, Rs 2 lakh each was paid out, resulting in a confirmed loss of Rs 10 lakh to the government.EOW officials said that Deepmala Mishra, Jignesh Prajapati, Naveen Mittal and Pooja Kumari, in conspiracy with the then employees of the Gwalior municipal birth–death branch and Union Bank of India's Sheopur branch, allegedly prepared fake death records of living individuals, showed them as deceased and withdrew the insurance amount by impersonation.Based on these findings, a prima facie case has been registered under Sections 318, 319, 336, 338, 340 and 61(2) of the Bharatiya Nyaya Sanhita (Indian Penal Code, 2023).The EOW said information related to suspicious claim cases from other insurance companies is still being received and is under continuous examination. Officials indicated that the scale of the fraud could be significantly larger as more districts and insurers come under scrutiny. This is not the first set of cases linked to the alleged racket. Earlier, during investigation into 15 similar cases involving Axis Max Life Insurance and SBI Life Insurance, the EOW had registered multiple FIRs across Gwalior, Morena and Bhind districts.In Gwalior district, Crime No. 117/25 was registered against Deepmala Mishra, Jignesh Prajapati and Vivek Dubey, a former employee of Utkarsh Small Finance Bank, in connection with five cases.In Morena district, Crime No. 118/25 was lodged against Mansingh Kushwah, Ballesus Kirar, Pradeep Kushwah, Rinku Singh Kushwah, Saguni Singh Kushwah, Suratram Kushwah (then secretary of Gram Panchayat Badpura, Ater, Bhind) and others, again linked to five fraudulent claims.Similarly, five cases related to Bhind district were registered under Crime No. 119/25 against Balendra Singh Kushwah, Satish Parihar, Nikhil Vimal, Bholu Singh, Suratram Kushwah and others. EOW officials said the probe is ongoing and further arrests and recoveries are likely as the alleged insurance fraud network across the Gwalior–Chambal division is unravelled.