ORDER AJIT PRAKASH SHAH, C.J. 1. By order dated 29.10.2003 passed in Contempt Petition No. 431 of 2003, National Insurance Company Ltd. Coimbatore v. K. Nandabalan 2005 (2) LW 439 , the learned single Judge directed to constitute a Central Agency headed by the Deputy Inspector of Police, CB CID, Chennai for the purpose of looking into all the complaints relating to bogus claims before the Motor Accident Claims Tribunals filed based on fabricated records. It was directed that whenever complaints of such types are given to the Central Agency so constituted, the Central Agency may have the complaints investigated by any of the officers attached to it or transfer the investigation to any officer of competent jurisdiction within whose jurisdiction the cause of action for filing a motor accident case has arisen. It was further directed that in the event of transferring the work of investigation to any officer other than an officer attached to the Central Agency, the Central Agency shall keep monitoring the investigation to be done by the officer to whom the work has been transferred. The Central Agency was directed to take every endeavour to complete the investigation in respect of crimes so brought to its notice within 60 days from the date of receipt of such a complaint and file the final report before the Court having jurisdiction over the area where the cause of action has arisen. 2. The Contempt Petition was filed by the National Insurance Company Limited complaining about the callous end indifferent manner in which the Law Enforcing Agency was treating the complaints filed by the Insurance Companies complaining of fabricated records to make it appear as though a particular vehicle is involved in a road traffic accident so as to bolster all false claims of alleged victims. The learned single Judge noticed that there is a racket going on in this State involving the handwork of a number of people from all fields, in fabricating the records at the police station level as well as at the hospital level, and those records are used to give a colour to a motor accident claim, before various Tribunals. The Court also took notice of the fact that several doctors, police officers and other public officials are involved in the scam. The Court also took notice of the fact that several doctors, police officers and other public officials are involved in the scam. In fact, the learned Public Prosecutor appearing for the State admitted the large-scale fraud and fabrication in such claims and stated that the State was also keen to put an end to the menace. The learned Public Prosecutor suggested for the constitution of one Central Agency to look into the complaints of the types referred to above so that the investigation would proceed on the right direction and in all earnestness. Pursuant to the order of the learned single Judge nearly 400 complaints were lodged before the Central Agency by the Insurance Company. 3. The National Insurance Company has now filed W.P. No. 7389 of 2005 complaining that the course of action initiated by the Central Agency is not only slow and tardy but after the initial enthusiasm, on the realization that a sincere re-investigation may expose fellow police officials, there was an effort to tone down the manner of investigation. It is alleged that the officer to whom re-investigation was entrusted are totally indifferent to the serious nature of the Crimes involved. Even in such of those few cases where a fraud was exposed and charge-sheets were filed, it was found that the charge-sheets were so formulated and proceedings manipulated so as to enable the accused to escape the wrath of law. In large number of cases, notwithstanding the glaring fraud and fabricated documents available on record, the Central Agency has totally disregarded and ignored the vital links and instead closed the complaints as mistake of facts. In particular, reference was made to several such instances in respect of complaints with District Crime Branch, Pudhukottai. It is alleged that the officials at Pudhukottai to whom re-investigation were entrusted were antagonistic towards Insurance Companies and the officials and investigators appointed by the company and had a pre-disposed mind to hurriedly close the re-investigation, so as to protect the fellow officers from being exposed. There was hardly any investigation of the kind expected from the Central Agency, which was vested with a solemn duty considering the scale and extent of fraud that was perpetrated in a beneficial jurisdiction. The Insurance Company had annexed to the petition a list of around 540 false MCOP claims throughout the State of Tamil Nadu. There was hardly any investigation of the kind expected from the Central Agency, which was vested with a solemn duty considering the scale and extent of fraud that was perpetrated in a beneficial jurisdiction. The Insurance Company had annexed to the petition a list of around 540 false MCOP claims throughout the State of Tamil Nadu. According to them a detailed and thorough probe is necessary at the hands of the expert and professional police establishment to verify the veracity of the accidents said to have been reported in various districts. It is alleged that the issue is quite serious and grave. Crores of rupees of public money is involved and larger public interest is at stake. Therefore, it is prayed that the investigation be entrusted to the Central Bureau of Investigation (CBI) to look into the complaints of the Insurance Company for a speedy and expeditious investigation as the Insurance Company is facing litigation in various Courts at various stages, and any award passed without the benefit of such investigation would seriously prejudice the interest of the Insurance Company. 4. During the course of hearing, an additional affidavit was filed on behalf of the Insurance Company furnishing the details of the amounts involved in the scam. The statistics as on 31.12.2005 are as follows: S. No. Insurer MCOPs Reported Total Amount claimed (Rs. in crores) 1. M/s. National Insurance Company Limited, Coimbatore. 28,462 238.40 2. M/s. National Insurance Company Limited, Chennai. 19,071 205.99 3. M/s. New India Assurance Company Limited, Coimbatore 16,727 179.38 4. M/s. Oriental Insurance Company Limited. 28,157 313.08 5. M/s. United India Insurance Company Limited 55,962 692.75 It is stated that a significant percentage of the above claims i.e., 25% atleast were found to be tainted by fraud and fabrication. Further, in order to demonstrate that re-investigation by CB CID was not sincere and diligent and their closure of the complaints as mistake of facts was contrived and deliberate, the following instances from other police stations were also cited. “(i) M.C.O.P. No. 123/2002 - MACT, Virudhunagar - Rs. 10,00,000 - Crime No. 313/2001 - Virudhunagar Bazar Police Station. Deceased rider of TVS 50 TN-67-Z-7513 was knocked down by an unidentified van - After 7 days an insured vehicle TN-67-Z-0031 was falsely implicated - Notwithstanding a detailed investigation report dated 12.7.2004 with findings based on evidence gathered, complaint was closed as mistake of fact on 31.7.2005. 10,00,000 - Crime No. 313/2001 - Virudhunagar Bazar Police Station. Deceased rider of TVS 50 TN-67-Z-7513 was knocked down by an unidentified van - After 7 days an insured vehicle TN-67-Z-0031 was falsely implicated - Notwithstanding a detailed investigation report dated 12.7.2004 with findings based on evidence gathered, complaint was closed as mistake of fact on 31.7.2005. (ii) M.C.O.P. No. 342/2002 - MACT, Srivilliputhur - Rs.4,00,000 Crime No. 106/2002 - Dhalavaipuram Police Station. Injured Ramkumar admitted in a hospital on 7.3.2002 and treated till 21.4.2002 whereas the accident is alleged on 30.3.2002. In spite of documented evidence of date of accident and hospital records, complaint was closed as mistake of fact by CB CID. (iii) M.C.O.P. Nos. 79 and 80 of 2004 - MACT, Virudhunagar. Rs.1,00,000 and Rs.50,000 respectively - Cr.No.79/2002 - Virudhunagar Town Police Station. An unknown van had hit a two wheeler TN-67-T-3486 - An insured TN-67-U-4632 was falsely implicated for the purpose of the claim - In hospital records, G.H. Madurai and Jawahar Hospital, Madurai the noting was patient while riding a bike was hit by a car. Contrary to the findings of our Investigator with evidence complaint was closed as mistake of fact. (iv) M.C.O.P. No. 120/2002 - MACT, Sivakasi Rs.8,00,000 - Cr. No. 557/1999 - Virudhunagar Town Police Station. Deceased died in accident dated 16.10.99 reported to police as hit by an unknown vehicle and the vehicle held undetectable. After 2-1/2 years of such closure an insured, vehicle TN-67-Z-4644 was falsely implicated and charge-sheet filed to benefit the claimants. In spite of categorical findings based on acceptable evidence in Investigation Report dated 14.3.2004 complaint closed as mistake of fact on 17.11.2005. (v) M.C.O.P. No. 180/2001 - MACT, Sivakasi Rs.3,00,000 - Cr. No. 233/2001 - Sivakasi East Police Station. FIR was registered as involving an unknown vehicle - an insured TN69-Y-0646 was falsely implicated by a conspiracy. Notwithstanding findings in Investigation Report dated 5.12.2004 with credible basis, without proper examination complaint was closed as mistake of fact. (vi) M.C.O.P. No. 122/2004 - MACT, Virudhunagar - Rs.6,00,000 Cr. No. 1/2002 - Soolakarai Police Station. An unknown vehicle hit a bullock cart on 5.1.2002 and registered as F.I.R. After 3 months an insured vehicle TDG 4549 was falsely implicated. In spite of findings in Investigation Report dated 20.12.2004 backed by acceptable evidence complaint was closed as mistake of fact on 17.11.2005.” 5. W.P. Nos. No. 1/2002 - Soolakarai Police Station. An unknown vehicle hit a bullock cart on 5.1.2002 and registered as F.I.R. After 3 months an insured vehicle TDG 4549 was falsely implicated. In spite of findings in Investigation Report dated 20.12.2004 backed by acceptable evidence complaint was closed as mistake of fact on 17.11.2005.” 5. W.P. Nos. 39956 and 39968 of 2005 are filed by public spirited citizens seeking for entrustment of investigation into the printing F.I.Rs. outside the permitted source and misuse thereof with the CBI. It the case of the petitioners that the Police Departments in the State are freely using the duplicate FIRs in order to have wrongful gain. Reliance is placed on press reports in which particulars of such F.I.Rs. are furnished in detail. It has been pointed out that one P.S. Sankar, Proprietor of Keethana Printers and one M. Sundararajan, Proprietor of Arun Graphics in Udumalpet were arrested for printing the Government Department forms and for being in possession of the same without any authority. It is also pertinent to note that in the additional affidavit filed by National Insurance Company it has been demonstrated that such fake F.I.Rs. have also been used for registering some of the motor accident claims. 6. We have heard N. Vijayaraghavan, learned counsel appearing for Insurance Company inW.P. No. 7389 of 2005; K. Sathyabal and Manikandan Vathan Chettiar, learned counsel appearing for the petitioners inW.P. Nos. 39956 and 39968 of 2005 respectively, and A.L. Somayaji, learned Additional Advocate General appearing for the State. We have examined the facts and circumstances leading to the filing of various petitions in this Court and the events that led this Court in directing to constitute the Central Agency to enquire into the various complaints of insurance scam.A.L. Somayaji has not disputed that the situation is very grave and warrants effective steps to curb the menace. But he submitted that the State, Government in majority of the cases has taken bonafide action in the matter, and it must be left to the State Government to complete its investigation under the Code of Criminal Procedure without any interference from the outside agency. He also suggested that this Court may constitute a separate wing similar to Economic Offences Wing to investigate into the complaints under the supervision of any retired High Court Judge to be nominated by the Court. He also suggested that this Court may constitute a separate wing similar to Economic Offences Wing to investigate into the complaints under the supervision of any retired High Court Judge to be nominated by the Court. Having considered the submissions of the learned counsel for the parties, we are inclined to handover the investigation in the matter to the CBI. 7. Motor Accident Insurance has been made compulsory by Parliament for the benefit of innocent motor accident victims. The Parliament has further mandated that the defence of the insurer shall be limited so as to ensure that innocent victims get compensation from the Insurance Companies rather than seek relief from men of straw. It is a beneficial legislation to ensure certainty of compensation to victims and the Insurance Companies have a duty to ensure the same. It is this beneficial legislation which has been totally abused by some unscrupulous elements and it is distressing to note that a large number of police officials and medical doctors are involved in the scam. We are, however, refraining from entering upon the details lest it may likely to prejudice either party, but we think that since the accusations are directed mainly against the local police officials, it is desirable to entrust the investigation of the matter to an independent agency like the CBI so that all concerned including the Insurance Companies may feel assured that an independent agency is looking into the matter and that would lend the final outcome of the investigation credibility. Somayaji may be right in saying that the local police are carrying out the investigation faithfully, but the same will lack credibility, since the allegations are mainly against the Police Department. Therefore, in our opinion, it would be advisable and desirable as well as in the interest of justice to entrust the investigation to the CBI forthwith in respect of the complaints filed by the National Insurance Company as well as other Insurance Companies. 8. We accordingly direct that the CBI shall investigate into the said complaints filed by the Insurance Companies as well as complaints relating to the use of fake F.I.Rs. by different police stations. The learned counsel appearing for the Insurance Company states that the entire cost of the CBI would be met by the Insurance Companies. 8. We accordingly direct that the CBI shall investigate into the said complaints filed by the Insurance Companies as well as complaints relating to the use of fake F.I.Rs. by different police stations. The learned counsel appearing for the Insurance Company states that the entire cost of the CBI would be met by the Insurance Companies. The State is directed to extend its full cooperation and support and provide all necessary infrastructure to the CBI in investigation of the complaints. The CBI is directed to submit its preliminary report within a period of four months from today. All future complaints by the Insurance Companies shall be directly filed before the CBI. The Director of Central Bureau of Investigation, New Delhi is directed to constitute a Special Team of Investigators for carrying the investigation in the present matter. It is further directed that when filing of such complaint is brought to the notice of the concerned Motor Accident Claims Tribunal, the Tribunal shall take note of it before passing the order and if necessary to record further evidence in order to ascertain the genuineness of the claim. We make it clear that our order should not be taken as a reflection on the credibility of either the local police or the State Government. We have passed the order keeping in mind the larger requirements of justice. 9. The hearing of the petitions is adjourned to 19th July 2006. Petition allowed.