State Government has handed over the case of frauds committed in Jammu and Kashmir Government Employees Group Medical Insurance Policy with Anil Ambani's Reliance General Insurance to Vigilance Organization as revelations surfaced that the Finance Department had made an advance payment of Rs 60 crore to the Insurance Company without approval of the Governor or the Chief Secretary. Government has decided to handover the case to the State Vigilance Organization for in-depth probe into allotment of contract to the Reliance General Insurance, floating of tenders by a private firm and not by the Government and other issues involved in the case. Entire gamut of the scam would be investigated by the Vigilance Organization and an order for termination of Group Medical Insurance Policy with Reliance General and handing over of case to the Vigilance Organization was likely to be issued soon even as the Civil Secretariat, the seat of the Government, closed today in Srinagar, the summer capital of the State and will re-open in Jammu, the winter capital, on November 5. Some revelations have come to the fore including advance payment of about Rs 60 crore to the company. The payment had been made to the Company without approval of the Chief Secretary or the Governor.
The Finance Department however, justified the payment on the ground that 25 per cent payment out of total Rs 280 cr worth contract had to be made in advance. The role of a private company, which was authorized to float tenders, has also come under scrutiny. The company was chosen in January 2018, when the PDP-BJP Government was in power. The Reliance firm was picked last month - by then the coalition had collapsed and Central rule had been declared- through the bidding process.State Government employees were up in arms against the contract, alleging it was framed out fraudulently. The issue snowballed after employees resented the Policy being made mandatory and also being extended to two Shrine Boards. Around 3.5 lakh regular Government employees are compulsorily covered under the scheme. For pensioners, it is optional. The scheme is expected to cover many people, including the family members of the employees, and hundreds of crores of rupees are expected to be paid as premium. The scheme covers each employee plus five members of his or her family for coverage of Rs 6 lakh with a premium of Rs 8,777 per annum. For a pensioner, the premium was fixed at Rs 22,229.

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