After Rafale backlash, J&K Guv scraps insurance deal with Anil Ambani firm, calls it fraud

At a time when Anil Ambani's Reliance Group is on a notice-serving spree to media houses over their coverage of shoddy Rafale jet deal, Jammu and Kashmir Governor Satya Pal Malik has announced scrapping of controversial Group Medical Insurance Policy for government employees with Anil Ambani’s Reliance General Insurance Limited (RGIL).

The Governor on Wednesday said “it was full of frauds”, and pertinently, state’s finance department has been held responsible for rolling out the the policy. Malik added that the entire process was carried out in secrecy and even the tenders were opened on a holiday to suit a particular company.

Incidentally, the proposed insurance contract aimed at covering around 400,000 government employees and pensioners was allotted by Malik’s administration to RGIL soon after he took over as Governor of the state.

While it was mandatory for employees of PSUs, autonomous bodies and universities, it was supposed to be optional for pensioners and other categories of employees and accredited journalists.

“I have ordered termination of Jammu and Kashmir Group Medical Insurance Policy for government employees. I went into roots of the case and it turned out to be full of frauds. Formal orders will be issued in the next two days,” said Malik, when asked about the policy running into ₹20,000 crore to ₹25,000 crore.

Formal orders to this effect will be issued in the next two days, he added.

The Governor went on to say that the entire process was carried out hurriedly to a point that the tenders were opened on a holiday to suit a company. “The government hadn't even called the tenders for the said policy, but a front company was floated by the officers to call the tenders, which were not uploaded on the government website,” he added.

He further stated that: “Then the amount was changed to suit the company, the tender was opened on a holiday. More employees were added to the policy to raise the amount. I worked to find out which officers and how much amount was involved.”

“I spoke to the Chief Secretary and directed for immediately scrapping the contract with the Insurance company,” he claimed.

The 'mandatory' insurance policy had kicked off a major controversy in the state. Not only the mainstream political parties had criticised it, the policy had also triggered resentment among the government employees, who protested that the the policy would benefit the company only.

Employees Joint Action Committee had objected to the government move. “The government employees are being made scapegoats. It is totally unjustified and a big burden on the state government employees, in specific the non-gazetted cadre,” the employees body had said in a statement, adding that annual premium of mediclaim insurance policy for all categories of government employees was “unfair, unjustified and unacceptable.”

Earlier, It was alleged that the Anil Ambani-led Reliance Entertainment had made payment to actress-producer Julie Gayet, partner of the former French President Francois Hollande for a French film for which the shooting was to be facilitated at the exquisite locales of Ladakh.

Congress has been attacking the Modi government for having scrapped the earlier deal for 126 aircrafts, which was negotiated with the previous United Progressive Alliance (UPA) government. Rahul Gandhi had also taken potshots at Anil Ambani over insurance deal in Jammu and Kashmir.

"When your BFF is the PM, you can get the 1,30,000 Cr. Rafale deal, even without relevant experience. But wait. There’s more!" Gandhi tweeted, adding that “Apparently, 400,000 JK Govt staff will also be arm twisted into buying health insurance only from your company!"

In early October, Maharashtra government had announced that Anil Ambani-owned Nippon Life Asset Management would be managing Employees' State Insurance Corporation (ESIC) funds. The total investment of ESIC as on 31.3.2017 stands at ₹59,382 crore.