IRDAI Official Arrested in ₹5.3 Crore Fund Diversion Scandal

Speedy Summary

• An IRDAI officer, Bhaskarabhatla Suryanarayana Sastry, was arrested by the Cyberabad Economic Offences Wing (EOW) for misappropriating ₹5.30 crore.
• Sastry, an Assistant Manager in General Management at IRDAI and a resident of Shaikpet, Hyderabad, allegedly diverted funds using fraudulent methods.
• He reportedly misused his position to create fake invoices, office notes, quotations, and processed payment files for higher officials’ approval.
• Sastry replaced the bank account details of legitimate vendors with those belonging to his family members to divert payments into their accounts.
• The scheme caused a loss of ₹5.30 crore to IRDAI.
• The Cyberabad Police advised government offices and companies to verify invoices before transferring funds.

Indian Opinion analysis

The reported case highlights significant vulnerabilities in financial oversight within government agencies like the Insurance Regulatory and Progress Authority of India (IRDAI). The systematic misuse of administrative processes sheds light on gaps in internal audit mechanisms that failed to identify irregularities until large-scale diversion occurred. While due process is ongoing against the accused individual, this incident emphasizes the need for stricter financial controls and real-time verification systems across key regulatory bodies. It also underscores an urgent requirement for enhanced accountability at various levels of governance within public institutions. If addressed effectively through policy reforms or technological safeguards such as automated audits or blockchain-enabled record keeping, such risks can be mitigated significantly.

Published – September 01, 2025 07:52 pm IST

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