Rajasthan HC Quashes Recovery Order Against LIC Officer For Not Reporting Agent In Govt Service

The Rajasthan High Court quashed the Life Insurance Corporation (LIC) recovery order against Development Officer Padam Chand Prajapat.

The order was initiated after it was revealed that an agent working under him was employed in government service, violating LIC’s rules.

However, the court found no evidence that LIC had suffered a loss or that Prajapat had violated any service regulations. The agent, despite being unauthorized, brought more business to LIC.

The court noted that LIC had not conducted a departmental inquiry or provided an opportunity for the petitioner to defend himself.

Consequently, the recovery order was set aside.