ED attaches assets worth Rs 36 crore in J&K health insurance fraud case

Case related to alleged irregularities in awarding tender of insurance scheme

CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: The Enforcement Directorate (ED) has attached assets worth over Rs 36 crore in connection with its ongoing investigation into an alleged health insurance fraud case in Jammu and Kashmir.

The case is related to the alleged irregularities in the awarding of the tender of mediclaim insurance policy for J&K government employees, PSU employees and pensioners to the Reliance General Insurance Company (RGIPL) by the Finance Department in collusion with Trinity Reinsurance Brokers Limited (TRBL), the central agency said in a statement.

The ED initiated the investigation based on a First Information Report (FIR) registered by the CBI, ACB, Srinagar.

The offenses under scrutiny include various sections of the Prevention of Corruption Act and the Indian Penal Code. The complaint, filed by the J&K government, implicates TRBL, RGIPL and unidentified public servants and private individuals.

The investigation revealed that the J&K Finance Department intentionally awarded the tender of the health scheme to TRBL through a questionable selection and shortlisting process, bypassing essential eligibility criteria.

The engagement of an IRDAI registered insurance company through TRBL was granted, despite the company being blacklisted by the Government of Chhattisgarh. This decision was made by modifying and deleting essential eligibility criteria, even though the company had a minimal presence and experience in J&K.

In this scheme, Rs 63.53 crores were disbursed to these companies. Out of this amount, medical claims of Rs 17 crores were fraudulently disbursed by RGIPL, the ED said.

The ED has attached land valued at Rs 4.04 crore in the name of Globus Trade Links Pvt. Ltd, a subsidiary of TRBL, and fixed deposits to the extent of Rs 32.53 crore pertaining to RGIPL.