CBI Chargesheets Satya Pal Malik, 6 Others in Kishtwar Hydel Scam Case

The Central Bureau of Investigation (CBI) on Monday filed a chargesheet against seven individuals, including former Jammu and Kashmir Governor Satya Pal Malik, in a case involving alleged corruption related to the awarding of a contract for a hydel project in Kishtwar district.

The investigation began after Malik, who was initially examined as a witness, made serious allegations that led to the registration of the case in 2022. Currently, the 78-year-old former Governor is admitted to New Delhi’s RML Hospital with a urinary infection and sepsis.

What Malik Alleged

In October 2021, two years after his tenure as Governor ended, Malik claimed he was offered bribes amounting to Rs 300 crore to approve two files, one involving Reliance Group chairman Anil Ambani, and the other an RSS functionary. Malik said a secretary had indicated these deals were shady but could secure Rs 150 crore each. He stated at a public event that he came to Jammu and Kashmir with “five kurta-pyjamas” and would leave with the same, implying his refusal to be bribed.

His allegations specifically referenced irregularities in a group health insurance policy rollout for government employees with Reliance General Insurance Private Ltd (RGIPL), as well as in the awarding of a contract for civil works on the Kiru Hydro Electric Project (HEP) on the Chenab river.

Initial Investigations and Referral to CBI

Six months after Malik’s accusations, J&K Lieutenant Governor Manoj Sinha announced that the government had decided to hand over the investigation to the CBI. The formal referral occurred on March 23, 2022, after which the CBI registered two separate FIRs related to the cases.

J&K Medical Insurance Case

After the J&K government’s existing insurance scheme with ICICI Lombard ended in 2017, new tenders were floated for a more comprehensive plan for government employees. Initially, only one bid was received, leading the government to hire Trinity Reinsurance Brokers Ltd (TRBL) to conduct the tender process. This time, seven companies participated, and Reliance General Insurance Private Ltd (RGIPL) was awarded the contract in September 2018, shortly after Malik assumed office as Governor. The contract was awarded on an L1 basis with the lowest quoted annual premium of Rs 8,777.

The insurance scheme started on October 1, 2018, with an advance payment of Rs 61 crore disbursed to RGIPL. However, the transfer raised concerns as it was allegedly made without the necessary approvals from the Chief Secretary or the Governor, triggering red flags at Raj Bhawan.

Amid protests from government employees regarding high premiums and lack of an opt-out option, Malik cancelled the deal, calling it “full of fraud.” Reports suggested TRBL was a front for a major business conglomerate, with changes made to the tender process to favour Reliance.

In 2021, the J&K Anti-Corruption Bureau (ACB) found no irregularities but recommended recovering Rs 44 crore from RGIPL since the scheme was cancelled less than a month after launch. The Finance Department, in February 2022, identified irregularities in the contract award, which prompted handing the probe to the CBI.

The CBI FIR named RGIPL and TRBL as accused, alleging that unknown Finance Department officials conspired with these firms and others to cheat the J&K government.

The Enforcement Directorate (ED) is also investigating the case. In January 2024, the ED provisionally attached properties worth Rs 36.57 crore linked to the matter, stating the Finance Department had deliberately engaged TRBL through a questionable selection process.

Kiru Hydel Corruption Case

This case concerns a Rs 2,200 crore contract awarded for civil works at the Kiru Hydro Electric Project (HEP) in Kishtwar district by Chenab Valley Power Projects Pvt Ltd (CVPPPL) in 2019. The contract, given to Patel Engineering Ltd, included construction of tunnels, dams, shafts, and a powerhouse.

The CBI FIR noted that previous investigations by the ACB and J\&K power department found that e-tendering guidelines were not followed. Although a decision was made in CVPPPL’s 47th Board Meeting to re-tender the project with reverse auction after cancelling the initial tender, this was not implemented. Instead, the tender was awarded to Patel Engineering.

The overall project cost is estimated at Rs 4,287 crore and has faced criticism over alleged sub-standard work and failure to provide employment to local youth, a key promise.

The ACB observed that the tender was cancelled during the 47th Board Meeting but revived and awarded to Patel Engineering in the 48th meeting.

Those Named in the Chargesheet

Besides Malik, the chargesheet includes M S Babu, Managing Director of CVPPPL; board directors M K Mittal and Arun Kumar Mishra; private secretaries Virendra Rana and Kanwar Singh Rana; Rupen Patel, Managing Director of Patel Engineering; and Kanwaljit Singh Duggal.

Also Read: Rahul Gandhi Slams Jaishankar Over Operation Sindoor; MEA Fires Back