The Central Bureau of Investigation (CBI) in Gandhinagar has initiated a formal case against a business manager of the Oriental Insurance Company Limited, accusing him of embezzling funds exceeding Rs 6 crore from the public sector insurer. The accused, identified as Sanket Vaghela, was stationed at the company's Surendranagar business office.
Details of the Alleged Financial Misconduct
Based on a complaint lodged by S K Dutta, the Regional Manager of the Ahmedabad regional office, the CBI registered the case on December 19. Vaghela, who was recruited as an administrative officer on August 13, 2018, had been overseeing the Surendranagar office for the past three years. His responsibilities encompassed critical financial operations including premium collection, creditor payments, and disbursing professional fees to third-party administrators (TPAs) and brokers.
The investigation reveals that the company operated a dedicated Axis Bank account in Ahmedabad for all transactions linked to the Surendranagar office. Vaghela, intriguingly, held a personal account with the same bank. It is alleged that between February 14, 2025, and September 27, 2025, he abused his official capacity to illicitly transfer large sums from the corporate account to his personal one through online channels.
The Modus Operandi and Discovery
CBI officials stated that Vaghela's method involved creating fraudulent vouchers that falsely indicated payments to legitimate TPAs and brokers, complete with their names and addresses. However, the funds were systematically diverted to his own account. The scam unraveled during an internal audit, which noticed substantial amounts being frequently credited to a single account. This account was later traced back to Vaghela.
The First Information Report (FIR) explicitly mentions that Vaghela acted with mala fide intention and by misusing his position, causing wrongful loss to the Oriental Insurance Company. Following the audit's red flags, the company took disciplinary action and suspended Sanket Vaghela on October 7, 2025.
Admission, Partial Repayment, and Legal Action
In response to his suspension, Vaghela reportedly acknowledged the order in writing. He claimed to have already deposited Rs 2.3 crore back into the company's coffers and promised to settle the remaining amount within a three-month period. Further, in an email dated October 8, 2025, he allegedly confessed to the misconduct, stating he had repaid approximately Rs 2.5 crore and would gradually clear the outstanding balance.
Despite this admission, the legal machinery was set in motion. After securing the mandatory prior approval under Section 17A of the Prevention of Corruption Act from the competent authority, the CBI formally registered offences. The case has been filed under relevant sections of the Bharatiya Nyaya Sanhita (BNS) and the Prevention of Corruption Act, paving the way for a thorough probe into this significant corporate fraud.
