Is prosecution of officials of National Insurance right step?

Is prosecution of officials of National Insurance right step?
According to a news item- 3 officials of National Insurance are to be prosecuted.

Is it a right step? It can happen for those who are working for PSU’s then why not for those who are working for Private Companies? Does it curb innovation, motivation to take decisions? Is it that those who do not take any decision get promoted because their track record is clean? Your comments are invited.