New Delhi, March 27 -- The Supreme Court has ordered a police probe against a Gujarat-based firm for orchestrating a fire at its godown to claim insurance, and warning that such "staged incidents" undermine the integrity of the insurance system and erode public confidence. A bench of Justices Ahsanuddin Amanullah and R Mahadevan directed the Ahmedabad police commissioner to constitute a special investigation team (SIT), headed by an officer not below the rank of deputy commissioner of police, to carry out a comprehensive probe into the fraud and identify all those involved. The court mandated that the investigation against Sayona Colors Pvt Ltd be completed within three months, with a report to be submitted in a sealed cover. "Fraudulent insurance claims involving staged incidents are not uncommon and have serious ramifications on the integrity of the insurance system and public confidence therein," the bench said in its order released on Tuesday. The court's direction came after it conclusively found that the fire at the company's godown in March 2011 was not accidental but a "deliberate and orchestrated act of arson" aimed at securing unlawful gains under insurance policies. Setting aside a 2023 order of the National Consumer Disputes Redressal Commission (NCDRC) which had partly allowed the claim, the top court held that once fraud is established, the entire claim collapses and no relief can be granted. "It is a settled principle that fraud vitiates all solemn acts. once it is established that the claim itself is founded on fraud, the entire edifice of the claim collapses," the bench said. The company had claimed losses exceeding Rs.28 crore due to the fire, attributing it to a short circuit. However, the court found this explanation untenable. Given the "categorical finding of fraud", the court ordered a criminal investigation, directing the SIT to probe the incident and the larger conspiracy....