It is not clear how the order of the J&K Government will be implemented as the Reliance General Insurance, which at that time was owned by Anil Ambani’s Reliance Group, has now changed hands and changed its name also. It is now owned Hinduja Group and new name of the company is IndusInd General Insurance.
Sources in the company have said the order mostly may not be applicable to IndusInd General Insurance as the company has an abeyance.
IndusInd General Insurance has already partipated in the bidding of the Aaushman Bharat scheme(Ayushman Bharat – Pradhan Mantri Jan Arogya Yoja (AB PM-JAY) of J&K, which is now an union terrotory and has also won the competitive bidding.
Srinagar: After finding fault with Reliance General Insurance Company, which had fraudulently participated in a Group Mediclaim Insurance Policy/Scheme for its employees, the Jammu & Kashmir government has blacklisted the company for a period of two years from participating in any bidding or procurement process initiated by the government.
However, it is not clear how the order of the J&K Government will be implemented as the Reliance General Insurance, which at that time was owned by Anil Ambani’s Reliance Group, has now changed hands and its name after going through a long insolvency proceedings.
It is now owned by the Hinduja Group and the new name of the company is IndusInd General Insurance.
Sources in the company have said the order mostly may not be applicable to IndusInd General Insurance the company has an abeyance.
According to observers, if fault, such as fraud, misfeasance, or wrongful trading, is discovered after the conclusion of insolvency proceedings (e.g., after the resolution plan is approved or the company is dissolved), the company and its management can face serious legal consequences. Insolvency law generally allows for the “piercing of the corporate veil” to hold individuals accountable, even after dissolution.
Besides, IndusInd General Insurance has already partipated in the bidding of the Aaushman Bharat scheme(Ayushman Bharat – Pradhan Mantri Jan Arogya Yoja (AB PM-JAY) of J&K, which is now an union terrotory and has also won the competitive deal.
The Scam
The Government of Jammu & Kashmir, after following a transparent tendering process, entered into a tripartite agreement dated: Oct 15,.2018 with Trinity Reinsurance Brokers Limited (TRBL) and Reliance General Insurance Company Limited (RGICL) for implementation of a Group Mediclaim Insurance Policy/Scheme for government employees and other eligible beneficiaries.
However, immediately after implementation, serious and widespread doubts were expressed by various quarters including several cross sections of the society, as well as, by the employees about the finalization of the contract and the contract was finally terminated with effect from Dec 31, 2018, said the government order.
The scandal was afterwards investigated by the J&K Government’s Anti Corruption Bureau(ACB) as well as the Central government’s CBI and and the Enforcement Directorate(ED) and FIRs were registered in connection with the matter.
Submitting the complaint on 20th June 2025 before the Special Judge Anti-Corruption CBI Cases Kashmir, Srinagar (Designated Special Court of PMLA Cases under the Prevention of Money Laundering Act (PMLA), at Srinagar, in which RGI was named as one of the accused, the ED has concluded,“ M/s. RGIC has entered in conspiracy with M/s. TRBL, which resuited in to their selection as the insurance company for Group Medical Insurance Scheme for Govt employees of State of Jammu & Kashmir, even without having the required eligibility. M/s. RGICL has approved the brokerage to M/s. TREBL and payment of TPAS on thehigher side and the same was added to the premium quoted for providing the Medical Insurance Policy and thereby caused loss to the Govt. and its employees. Thereby RGICL cheated the Govt and fraudulently got disbursed the amount of Rs 63 crore as the premium for the first quarter and thereafter the said amount was utilized/disposed off for payment of brokerage fees and taxes. Balance amount of Rs 32.53 crores were diverted to various accounts and utilized for the business purpose and laundered and prevented its identification. Thus, Ms. RGICL has been found to have committed the offence of Money laundering y/s 3 of PMLA, which is punishable.”
RGI also had failed to discharge the following essential contractual obligations as per the tripartite agreement:
-issuing health insurance cards and enrollment kits to beneficiaries
within the stipulated period;
-providing the list of empanelled hospitals and related information as
required under the agreement;
– providing the web-based application platform and Management Information System (MIS) for beneficiaries and Government authorities;
-establishing district level KIOSK offices and project offices for
coordination with the Government;
– providing dedicated telephone/call centre services for the beneficiaries
as mandated under the agreement;
– finalising performance parameters and penalty framework forming part
of the contractual obligations;