India’s Enforcement Directorate (ED) has attached assets valued over Rs 36 crore (US$4.3 million) linked to Reliance General Insurance Pvt Ltd (RGIPL) and Trinity Reinsurance Brokers Pvt Ltd (TRBL) as part of a money laundering investigation connected to an insurance fraud case in Jammu and Kashmir.
According to a report from The Times of India, the investigation concerns allegations that the J&K finance department improperly awarded a Mediclaim policy tender for government employees, PSU employees, and pensioners to RGIPL, in collusion with TRBL, a firm specialising in insurance brokerage.
The seized assets include land registered in the name of Globus Trade Links Pvt Ltd, an affiliate of TRBL, valued at Rs 4.04 crore, and fixed deposits amounting to Rs 32.53 crore belonging to RGIPL.
The ED's investigation was initiated following an FIR lodged by the Central Bureau of Investigation (CBI). This FIR was based on a complaint by the J&K administration against the two companies, along with unnamed public servants and private individuals.
Findings from the ED investigation suggest that the finance department inappropriately awarded the tender for selecting an intermediary to design, float, and implement the health scheme to TRBL. The process reportedly bypassed the required eligibility criteria and was considered dubious.
Further, the tender for engaging an IRDAI-registered insurance company was given to RGIPL through TRBL. This decision was controversial as RGIPL had been previously blacklisted by Chhattisgarh and allegedly lacked significant presence or experience in J&K. The eligibility criteria were reportedly modified, and essential requirements removed to favour RGIPL.
The ED reported that an amount of Rs 63.53 crore was wrongfully disbursed under the scheme to these companies. Out of this, medical claims amounting to Rs 17 crore were paid out by RGIPL.
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