Kotak Life Insurance Company has charged Hemant Kolhe, one of its fixed income dealers, with fraudulent transactions that benefited him and a few companies but led to losses for the insurer.
The insurer has recorded the fraud to regulators and is pursuing criminal charges against the employee who supposedly benefited by as much as Rs 2.5 crore for colluding with unlisted firms.
A complaint of employee fraud has been filed by the company against Kolhe for taking monetary favours from a third party for entering into transactions. The company has also reported the fraud to RBI, SEBI and IRDAI and is taking action against the employee.
Kolhe kept connections with external parties, namely, Tipsons and East India Company, and used to transact at prices different from the best available prices of these instruments.
“After the receipt of a whistle-blower complaint against Hemant Kolhe, an internal inquiry was undertaken immediately,” said Rohit Rao, chief communication officer, Kotak Mahindra Group.
“During the inquiry, it was found that Kolhe accepted approximately Rs 2.25 crores in a kickback from external parties for carrying out certain transactions on NDS-OM platform. We have lodged a police complaint against Kolhe and have also reported the matter to the IRDAI and the RBI.”
