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

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By ETV Bharat English Desk

Published : Jan 18, 2024, 5:07 PM IST

The Enforcement Directorate (ED) has taken decisive action by attaching properties valued at more than Rs 36 crore in connection with an ongoing investigation into fraudulent activities related to the health insurance of employees in Jammu and Kashmir.

Enforcement Directorate attaches properties worth over Rs 36 crore in J&K health insurance fraud case involving Reliance General Insurance and Trinity Reinsurance Brokers.

Srinagar (Jammu and Kashmir): The Enforcement Directorate (ED) has taken decisive action by attaching properties valued at more than Rs 36 crore in connection with an ongoing investigation into fraudulent activities related to the health insurance of employees in Jammu and Kashmir.

The case involves Reliance General Insurance Pvt. Ltd. (RGIPL) and Trinity Reinsurance Brokers Private Limited (TRBL). In an official statement, the ED revealed that the case is linked to the awarding of the Mediclaim Insurance Policy tender for Jammu and Kashmir Government Employees, PSU employees, and pensioners. The collusion between J&K Finance Department and Trinity Reinsurance Brokers Limited in awarding the tender to Reliance General Insurance is at the centre of the investigation.

According to the statement, the ED probe was initiated based on an FIR registered by the CBI, ACB, Srinagar. The FIR detailed offenses under various sections of the Prevention of Corruption Act (Pari-Materia to sections 120-B & 420 of IPC) and Jammu and Kashmir Prevention of Corruption Act (Pari-Materia to sections 13(1) (d) read with 13(2) of PC Act). The complaint filed by the J&K government targeted Trinity Reinsurance Brokers Limited, Reliance General Insurance Company Limited, and unnamed public servants and private individuals.

The investigation uncovered that the J&K Finance Department intentionally awarded the tender to TRBL through a dubious selection and shortlisting process, ignoring essential eligibility criteria. Furthermore, the tender for engaging an IRDAI registered insurance company was facilitated through TRBL to a company already blacklisted by the Government of Chhattisgarh. This was done by modifying and deleting essential eligibility criteria, even though the chosen company had minimal presence and experience in J&K, as stipulated in the tender requirements.

The statement highlighted that a total of Rs 63.53 Crores was fraudulently disbursed to these companies. Out of this amount, Rs. 17 crore was used for medical claims by M/s RGIPL. The ED has taken swift action by attaching land worth Rs 4.04 Crore in the name of Globus Trade Links Pvt. Ltd., a subsidiary of TRBL, and Fixed Deposit Receipts (FDRs) valued at Rs 32.53 Crore related to Reliance General Insurance Pvt. Ltd.

The ED emphasized that the investigation is still underway, indicating that further actions may be taken as more details emerge.

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