28 lawyers accused in UP for fake motor accident claims: SIT to Supreme Court

At least 92 criminal cases were registered from 2015 to 2021 in Uttar Pradesh in relation to filing of fake motor accident claims, a special investigation team has informed the Supreme Court [Safiq Ahmad v. ICICI Lombard General Insurance Co. Ltd. & Other]..The 92 cases were registered after completing enquiry in 247 cases out of the 1,376 cases of suspicious claims received by a Special Investigation Team (SIT) during that period.In 55 of those 92 cases, 28 lawyers have been arraigned as accused, the Court was further told.These figures found mention in the order passed by the top court on Thursday in a case in which the Court is considering the issue with respect to filing of fake claim petitions for getting compensation under the Motor Vehicles Act as well as under the Workmen Compensation Act.“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,” the order noted..The SIT made the submissions to the Court pursuant to an earlier order of the Court dated October 5, 2021. "We impress upon the investigating officer of the SIT to expedite the enquiry/investigation with respect to complaints already received from various insurance companies with respect to suspicious fake claims. We also call upon the SIT to file a further affidavit pointing out in how many cases the charge sheets have been filed; when the charge sheets have been filed (the date of filing of the charge sheets), in which Courts the charge sheets have been filed and in how many cases the charges have been framed by the concerned Magisterial Court," the Court directed in its order.The Court also noted that the Bar Council of Uttar Pradesh submitted an affidavit stating that disciplinary proceedings have been initiated against 27 errant advocates.“We appreciate the steps taken by the Bar Council of Uttar Pradesh, taken on or after September 22, 2021, which shall ensure to maintain the purity of the legal profession in the State of Uttar Pradesh. We also impress upon the Bar Council of India/Bar Council of Uttar Pradesh to conclude the disciplinary proceedings in accordance with law as early as possible,” the Court said..The Court also took on record the submissions of Senior Advocate Atul Nanda, and advocate Vishnu Mehra, appearing on behalf of the two insurance companies and counsel appearing on behalf of the State of Uttar Pradesh/ SIT regarding the modus operandi employed the advocates who file fake cases under Motor Vehicles Act and Workmen Compensation Act.Investigating Officer of SIT also filed a short note on modus operandi in instituting fake compensation petitions, the Court noted.Nanda suggested that of Section 159 is complied with by all the Police Officers pan India and the accident information report as contemplated under Section 159 (post 2019 amendment) is out on the government portal – National Register of vehicle registration known as “VAHAN” AND “SAARTHI”, in that case, it can solve the problem of filing more than one claims in different States with respect to the same accident. He suggested these existing databases can be rendered useful for the purposes of adjudication of claims if they are expanded to include details of the accidents and drivers..He submitted that if the “VAHAN” portal is modified to allow and the police officials who is investigating the accident in question is required to mandatorily endorse an entry of the accident against such portal with an automatic intimation on the registered mobile of the owner, it will be very useful in preventing the submission of such fake claims.Nanda also suggested that a SIT should be constituted for every State to look into complaints of suspicious fake claims/petitions and the same should be headed by an officer not below the rank of Additional Director General of Police.The Court said that it will have to hear the Central government before issuing any directions in this regard.It, therefore, directed the registry to implead the Ministry of Transport, Government of India as a party-respondent and issue notice.."We request KM Nataraj, learned Additional Solicitor General of India to appear on behalf of the Ministry of Transport, Government of India and to assist the Court and to come out with suggestions how to curb the menace of filing false/fake claim petitions," the Court ordered. The matter will be heard again on January 25, 2022..[Read Order]