ED attaches properties worth ₹36.57 crore in J&K employees’ insurance case


The Enforcement Directorate (ED) on Thursday provisionally attached immovable and movable properties worth ₹36.57 crore in a case related to the “fraudulent awarding” of the tender related to the Mediclaim insurance policy for J&K government employees to Reliance General Insurance Private Limited (RGIPL) by the J&K Finance Department.

An ED official said the awarding of the tender was carried out in collusion with Trinity Reinsurance Brokers Limited (TRBL), an insurance broker. 

The ED has attached land worth ₹4.04 crore in the name of Globus Trade Links Private Limited, a subsidiary of TRBL, and fixed deposits of the value of ₹32.53 crore pertaining to RGIPL.

According to the ED, the J&K Finance Department deliberately awarded the tender for the engagement of an intermediary for designing, floating the tender, and implementation “by dubious or questionable selection and shortlisting process to TRBL without holding the essential eligibility criteria”.

The ED said the tender for the engagement of an insurance company registered with the Insurance Regulatory and Development Authority of India (IRDAI) was awarded through TRBL to a company that had already been blacklisted by the Government of Chhattisgarh.

The ED suggested that there was modification and deletion of essential eligibility criteria, even though the company had less presence in the State of J&K and bare minimum experience, as a pre-requirement of the tender.

“An amount of ₹63.53 crores was fraudulently disbursed to the above companies. Out of the said amount, the medical claims of approx. ₹17 Crore have been disbursed by the RGIPL,” the ED said.

The ED had initiated the investigation after a First Information Report (FIR) was registered by the CBI’s Anti-Corruption Bureau, Srinagar, for the commission of offences under various Sections of the “RPC (Pari-Materia to sections 120-B & 420 of IPC) and JKPC (Pari-Materia to sections 13(1) (d) read with 13(2) of PC Act)“, on the basis of a complaint filed by the General Administration Department, Government of the Union Territory of J&K, against Trinity Reinsurance Brokers Limited, RGIPL, and unknown public servants and private persons.

Former J&K Governor Satya Pal Malik on October 25, 2018 terminated the contract granted to the Reliance General Health Insurance Company Limited, a month after the J&K government rolled out the Group Mediclaim Health Insurance Scheme for employees, pensioners and accredited journalists of the State. Mr. Malik had alleged that the tenders were changed “to suit a particular company” and described the contract as being “full of frauds”.

The insurance scheme was rolled out on September 20, 2018 for an annual premium of ₹8,777 and ₹22,229 for employees and pensioners, respectively. Many employees also paid their first instalment for the policy, which added up to around ₹25,000 crore.

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