The ACB said it has also carried out searches at the IFFCO TOKIO premises in Srinagar and seized several incriminating documents.
According to the ACB statement, Nengroo, as chairman of J&K Bank, on 13 February 2019 signed an insurance deal with IFFCO TOKIO, in which his close relative Beigh was employed, giving undue benefits to the company.
Investigation revealed that J&K Bank had in 2000 entered into venture with PNB Metflife Insurance company for sale of its insurance products, and then in 2002 tied up with Bajaj Allianz Insurance Company in a similar venture for sale and distribution of its non-life insurance products, including health product.
According to the investigation, as a result of its deal with J&K Bank, IFFCO TOKIO was conferred the bank's insurance business in Srinagar and Anantnag at the cost of the resources of the bank as well as Bajaj Allianz Insurance Company Ltd.
The ACB statement said that probe further revealed that in the first quarter of financial year 2018-2019, J&K Bank received Rs 159 lakh as commission from Bajaj Allianz against a Rs 88 lakh commission received from IFFCO TOKIO General Insurance Company Ltd for the same period, thus causing a loss of Rs 71 lakh to J&K Bank.
The ACB alleged that by resorting to favouritism and abuse of his official position, Chairman J&K Bank Nengroo in connivance with the IFFCO TOKIO General Insurance Company MD got his relative Asif Manzoor Beig appointed in the insurance company on an annual salary package of Rs 19.28 lakh, which was approximately two-and-a-half times higher than his package at Bajaj Allianz General Insurance Company, where he earlier worked as deputy manager.
Beigh is currently working as Chief Manager in IFFCO TOKIO General Insurance Company's Srinagar office.
( With inputs from IANS )