CBI Records Satya Pal Malik's Statement In Reliance Insurance Fraud Case

Former Jammu and Kashmir Governor Satya Pal Malik's statement was recorded by the Central Bureau of Investigation (CBI) as a witness today in a case of alleged fraud linked to Reliance General Insurance, people familiar with the matter told NDTV.

Mr Malik had cancelled a contract by the company, owned by industrialist Anil Ambani, in 2018 when he was the Governor of Jammu and Kashmir.

The CBI spoke to Mr Malik and recorded his statement as a witness for some five hours today, sources said.

Mr Malik on April 22 said the CBI wanted certain clarification about his allegations of corruption against the company and others.

In a first information report (FIR), the CBI named Reliance General Insurance along with Trinity Reinsurance Brokers as accused in the alleged scam in rolling out a medical insurance scheme for Jammu and Kashmir government employees and their families.

The CBI action came after Mr Malik alleged fraud in the insurance scheme.

The scheme, covering some 3.5 lakh employees, was rolled out in September 2018. It was cancelled within a month by Mr Malik.

At that time, Mr Malik had said state government employees wanted the contract to be cancelled as they found it to be "fraudulent" and he too drew the same conclusion after going through the details.

"I myself went through files, and when I came to the conclusion that the contract was awarded wrongly, I cancelled it," Mr Malik had said.

The CBI spoke with Mr Malik in September last year for more information about the allegations he made against the insurance firms, and in an another case of alleged corruption in giving the contract for civil work at Kiru hydroelectric power project.