LIC Suffered No Loss, Gained More Business: Rajasthan HC Quashes Recovery Order Against Officer For Not Reporting Agent In Govt Service

Justice Arun Monga said, " Be that as it may, neither LIC has suffered any loss nor took any steps against the said Basti Ram Roj/agent, by filing an appropriate complaint before his employer that, while serving for the Government he violated his service rules by working as an agent. The Jodhpur bench of Rajasthan High Court quashed Life insurance Corporation of India's order initiating recovery proceedings against its Development Officers in connection with the money generated by the business conducted by an agent who was not authorized to work for LIC as he was in government service. The Court was hearing the development officer's plea challenging LIC's order initiating recovery proceedings against the petitioner. Answer was sought from the petitioner as to why he allowed the agent to work despite being a government employee After imposing a penalty of censure on the petitioner, another order was passed seeking recovery from the petitioner of incentive bonus and additional conveyance amount generated by the business conducted through the unauthorized agent. The counsel for LIC submitted that censure and recovery were separate issues where the recovery order sought to reclaim undue payments made on account of the agency operated by the unauthorized agent.