UP Police Arrests V-Care CEO in Rs 250 Crore Insurance Fraud Case
Insurance fraud allegations involving ₹250 crore have led to the arrest of V-Care’s CEO by UP Police, as investigators probe the alleged financial irregularities.
Insurance fraud allegations have led to the arrest of V-Care’s CEO by Uttar Pradesh Police in a case involving ₹250 crore. The investigation focuses on the alleged insurance fraud and the role of those involved.
NEW DELHI – Insurance Fraud: Uttar Pradesh’s Economic Offences Wing (EOW) has taken V-Care Multitrade chief executive Madhumita Kaur into custody in Ranchi, nearly a decade after it began investigating the company over an alleged Rs 250 crore fraud tied to insurance policies sold to customers. Police say the company is facing 26 cases across Uttar Pradesh, Uttarakhand, Bihar and Jharkhand. Kaur has been brought to Lucknow and presented before a court.
Kaur, a director and the chief executive officer of V-Care Multitrade Private Limited, was arrested in the Argora police station area of the Jharkhand capital. The arrest is linked to a case registered at Krishna Nagar police station in Lucknow, which forms part of a larger investigation the EOW has been handling. She is a resident of the Gindpiri locality in Ranchi. After the arrest, the EOW obtained transit remand from a court in Ranchi before bringing her to Lucknow for further legal proceedings.
Insurance Fraud: 26 Cases in Four States
According to the EOW, 26 cases have been registered against Kaur and others linked to the company. They are spread across police stations in Uttar Pradesh, Uttarakhand, Bihar and Jharkhand, which shows how far the company’s customer network is alleged to have reached. Earlier details released by the agency place a number of these cases at the Krishnanagar and Aashiana police stations in Lucknow.
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The state government assigned the investigations to the EOW’s Lucknow unit in November 2015. In July 2025, the EOW arrested another absconding accused in the same Rs 250 crore case, Prem Prakash Singh, and said at the time that 23 named accused had been identified. The investigation is now examining where customers’ money went, how the company operated, and what role each person responsible for running it played.
Insurance Fraud: How the Alleged Scheme Worked
The EOW says V-Care Multitrade was registered in Delhi and Haryana in 2008-09 and later opened a regional office in Lucknow’s Krishna Nagar area. Investigators allege the firm drew in customers by promising attractive benefits on life insurance policies from established insurers, including Reliance Life Insurance and Aegon Life Insurance. Customers were allegedly persuaded to buy policies with financial incentives and assurances of extra benefits.
The company also allegedly used a referral model. People who encouraged others to buy policies, or helped enrol new customers, were promised that the company would pay their second-year premium instalments. Investigators say that promise helped the scheme grow.
They allege the company then failed to deposit the premiums it had pledged, leaving customers facing financial losses and the risk of their policies lapsing. The EOW also suspects the arrangement was used to bring in more investors and generate commissions, while customers’ money and commission payments were allegedly misappropriated. The agency alleges the company eventually shut its offices, and its operators absconded.
Insurance Fraud: What Policyholders Should Know
The case highlights a risk the insurance regulator has repeatedly flagged: intermediaries who promise to pay premiums, offer bonuses or guarantee extra returns outside the terms of the policy. Indian insurance law restricts agents and intermediaries from offering rebates on premiums as an inducement to buy a policy.
Policies can lapse if premiums are not paid within the grace period, so policyholders are generally advised to pay premiums directly to the insurer through official channels, check receipts and policy status with the insurance company itself, and treat any promise of premium payment by a third party as a warning sign. The EOW has not yet said how many customers were affected. The allegations against Kaur and the other accused remain subject to investigation and court proceedings.
