After cancelling the tie-up with Reliance General Insurance for implementing the group mediclaim health insurance policy for state employees, Jammu and Kashmir Governor Satyapal Malik on Saturday ordered foreclosure of the contract.
The Governor who on Thursday had cancelled the contract saying there was "some bungling" in it, has also asked the Anti-Corruption Bureau (ACB) to investigate the matter.
The decision comes after the mandatory Reliance insurance for the state government employees and pensioners had sparked a row.
"The governor has approved foreclosure of the contract with M/s Reliance General Insurance Company (RGIC) for implementing group mediclaim health insurance policy for the employees and pensioners in the state," a Raj Bhavan spokesman said.
He said the matter has been referred to the newly-established Anti-Corruption Bureau for examining the entire process to see whether it was conducted in a transparent and fair manner.
"Keeping in view the importance of the matter, the government has directed the director, Anti-Corruption Bureau, to personally look into the matter rather than entrusting it to someone else," the spokesman said.
He said action would be taken on the findings of the ACB.
Rahul Gandhi's Dig
On October 6, Congress President Rahul Gandhi had tweeted saying "When your BFF"(best friends forever) is the Prime Minister, "4,00,000" J&K Govt staff will be "arm twisted" into buying health insurance from "ONLY from your company", referring to the Anil ambani-led Reliance group which had bagged the deal.
The state government then was very quick in their response to Gandhi's allegations, saying that the scheme has been implememnted in "fair and transparent" manner.
"Dispelling the rhetorical misgivings being created about the Group Medical Health Insurance Scheme rolled out by the JK government recently, the state government Saturday made it clear that the scheme has been implemented after following all the required procedures in a fair and most transparent manner," an official spokesperson of the government had said on October 6.
Reliance Refuted Allegations
Reliance General Insurance Company had also refuted the allegations and said that it won the contract from the government after a "rigorous transparent and competitive tender."
In a statement issued in Mumbai, Reliance General had said that it has won the employee health insurance policy as part of the "J&K Chief Minister's Group Mediclaim Policy".
"As the proposal of Reliance General Insurance was the most competitive, i.e. almost 35 per cent lower than the other closest proposal, the state government offered the policy to Reliance General Insurance to provide the best commercial terms to its employees," the statement added.
Congress Welcomes Cancellation
The Jammu and Kashmir Pradesh Congress Committee on Friday, while welcoming the Governor's decision to cancel the contract, has demanded a time bound high-level probe to book the culprits involved in "bungling" in Reliance General Insurance policy.
The JKPCC chief spokesperson Ravinder Sharma said the governor has vindicated the Congress charges led by Rahul Gandhi that undue favours have been extended to Anil Ambani's Reliance group.
PTI
