J&K Co-operative Bank Lends Rs 223 Crore to ‘Non-Existent’ Firm

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J&K Cooperative Bank

SRINAGAR – The Anti Corruption Bureau (ACB) on Monday said that it has unearthed whopping Rs 223 Crore Scam involving senior officers of the Jammu and Kashmir Co-operative Bank Ltd.

According to an official spokesperson, the ACB conducted a probe after it surfaced that Mohammad Shafi Dar, Chairman J&K Co-operative Bank Ltd, Rajbagh has sanctioned an amount of Rs 223.00 crore fraudulently in favour of nonexistent Co-operative Society ‘River Jhelum Co-operative house Colony’ at Shivpora Srinagar run by Hilal Ahmad Mir of Magarmal Bagh.

The ACB in its probe carried out searches at the office and the residential houses of the accused after obtaining a search warrant from the court. The probe teams also seized several documents during the searches.

During the preliminary enquiry, the spokesperson said that it was further revealed that the Mir had moved an application to Secretary Cooperatives, Administrative Department of Co-operative Societies, seeking directions to J&K Cooperative Bank Ltd for grant of financial assistance to the tune of Rs 300.00 Crores for taking over possession of 300 kanals of land in city outskirts for construction of Satellite Township.

“The application was endorsed to Registrar Cooperative Societies J&K for taking up the matter with Jammu and Kashmir State Cooperative Bank. Accordingly J&K Cooperative Bank Srinagar sanctioned loan to the tune of Rs. 223 Crores without adhering any codal formalities,” the ACB spokesperson said.

He said the details of the society, including balance sheet, profit and loss account business, activities being done by the society, PAN number, income tax return, details of constitution of the board and board resolutions were not furnished to the bank when the loan was availed.

“During enquiry it also surfaced that River Jhelum Cooperative Housing Building Society has not been even registered with Registrar Co-operative Societies, J&K,” the bureau spokesperson said.

“Hilal Ahmad Mir and the Bank Chairman and others have prepared fake and fictitious registration certificates and managed the sanction of loan amount to the tune of Rs. 223 Crores,” he added.

The ACB spokesperson further said that a case FIR No. 04/2020 P/S ACB has been registered against the accused for causing a loss of Rs 223 crore to the bank.

He added that the investigations in this case were going on.

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