Srinagar: Jammu and Kashmir Governor Satya Pal Malik on has announced scrapping of Jammu and Kashmir Group Medical Insurance Policy for Government employees with Anil Ambani’s Reliance General Insurance saying “it was full of frauds”, which has been established and officers involved identified. He said the entire process was carried out in hush hush manner and even the tenders were opened on holiday to suit a company.

Malik announced cancellation of another contract of dam over a river, without naming the project, saying a deal of Rs 100 crore was finalized by the officers and cost of the project was raised by 35 per cent to secure benefits. In this case, he said, one of the officers has been removed, Daily Excelsior reported.

“I have ordered termination of the Jammu and Kashmir Group Medical Insurance Policy of Government employees after going into roots of the case, which turned out to be `full of frauds.’ Formal orders to this effect will be issued in the next two days,” Malik told Zee News tonight from the banks of Dal lake when asked by the interviewer about the Policy running into Rs 20,000 cr to Rs 25,000 cr.

He said the Government hadn’t even called the tenders for the policy and a front company was floated by the officers to call the tenders, which were not uploaded on the Government website.

“The amount was changed to suit the company. The tender was opened on holiday. I went to root of the case to find out which officers were involved…how much amount was involved. More employees were added to the policy to raise the amount,” the Governor said in a serious indictment of the Finance Department, which was responsible for implementation of the Policy.

Malik said he called the officers involved and when the fraud was established, “I spoke to the Chief Secretary and directed for immediately scrapping the contract with the Insurance company”.