Insurance scheme: J&K admn refutes graft charge

Srinagar, October 14

The J&K administration is facing allegations of corruption in the allocation of a multi-crore insurance scheme, with authorities refuting these claims as baseless and misleading.

A government spokesperson issued a statement to address the allegations, stating, “In response to recent misinformation circulated on social media that seeks to tarnish the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) SEHAT scheme, a thorough examination of indisputable facts and figures refutes these unfounded claims.”

Contrary to allegations of favouritism and a multi-crore scam, the spokesperson said the contractual agreement with an insurance company resulted in a substantial loss of Rs 93.82 crore to the firm. According to a report by a news portal, the controversy centres on an amendment to a multi-crore contract to benefit the insurance company. The State Health Agency (SHA), responsible for implementing the government insurance scheme, initially signed a contract with the company on December 26, 2020. A day later, Lakshya Mehta, the son of Dr Arun K Mehta who would later become the Chief Secretary of J&K, was employed by the firm, said the news portal. Mehta’s LinkedIn profile currently lists his position as a ‘senior executive’ with the company. When the firm sought to terminate the contract in September that year, the SHA modified the agreement by adding a 15% addendum to the existing policy, a change that occurred without legal backing, reported by the news portal.