Jammu & Kashmir Governor Satya Pal Malik on Saturday approved foreclosure of the controversial contract with Reliance General Insurance Company (RGIC) for implementing the Group Mediclaim Health Insurance Policy for the employees and pensioners in the State.

An official spokesman said that ever since sanction was accorded to the implementation of the insurance scheme by the government, doubts were expressed in various quarters, including a cross-section of the society and the media, about the credibility of the process. “This has cast a shadow on the entire process followed in the finalization of the scheme,” he said adding that the allegations flying around have not stopped but are pouring in the media about the selection of the Insurance Company, more so the selection of the intermediary (Broker).

He said that as the Governor’s Administration is mandated to provide good, transparent, fair and employee-friendly governance, it was felt that it would be difficult to proceed ahead with the implementation of the scheme. “Taking a well-informed view on all aspects and the concerns about the process involved, the Government is of the opinion that in the interest of the Government and for enhanced transparency, it would be judicious not to proceed further in the contract with the insurance firm,” he said and added that therefore, a decision has been taken to foreclose the contract.

The issue 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 adding that action would then be taken on the findings of the Anti-Corruption Bureau.