According to a CBI source, the firm had bought a “standard fire and special perils” policy worth over Rs 1 crore from the National Insurance Company Limited for three shops located in Kurla.

Mumbai: The CBI has begun a probe to establish irregularities in payment of insurance worth over Rs 21 lakh to a private firm owner who allegedly made fraudulent claims about his properties being destroyed in a November 2010 fire.

According to a CBI source, the firm had bought a “standard fire and special perils” policy worth over Rs 1 crore from the National Insurance Company Limited for three shops located in Kurla. The policy was valid between March 2010 and March 2011. In November 2010, the firm submitted claims with the insurance firm, stating that a fire had broken out at five of the firm’s owner’s properties in Navi Mumbai.

A CBI source said, “There was no fire at the firm’s Navi Mumbai premises. The fire had actually broken out in an adjacent godown. We are probing allegations that the firm wrongfully claimed damages worth Rs 21.96 lakh and caused corresponding loss to the insurance firm.”

The CBI will soon question the firm’s officials.