ACB Arrests Man Involved In 223 Crore Bank Scam

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J&K Cooperative Bank

Srinagar: The Anti-Corruption Bureau (ACB) on Monday claimed to have arrested the accused involved in whopping Rs 223 Crore fraud in Jammu and Kashmir Co-operative Bank that surfaced in March this year.

In a statement issued to Kashmir Observer, an ACB spokesperson said that Hilal Ahmad Mir of Magarmal Bagh here was arrested last week and an amount of Rs 187 crore siphoned by him was also recovered.

The spokesperson said that the probe was started 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.

“During probe, it was further revealed that the Chairman of the said Society has moved an application to Secretary Cooperatives, Administration Department of Co-operative Societies, where under he sought directions to the J&K Co-operative Bank Ltd for grant of financial assistance to the tune of Rs. 300.00 crores for taking over possession of 300 kanals of land located in the outskirts of Srinagar for construction of a Satellite Township,” the ACB spokesperson said.

He said that 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 Co-operative Bank Srinagar sanctioned a loan to the tune of Rs. 223 crores without adhering to any codal formalities, i.e obtaining the details of the Society Viz. Balance Sheet, Profit and loss Account business, activities being done by the Society, PAN No., Income Tax return, details of Construction of the Board Resolutions, etc,” the ACB handout said.

It further said that 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 ACB spokesman said that the Mir by acting in league with bank Chairman and others had prepared a fake and fictitious Registration Certificate in the name of Society and managed the sanction of loan to the amount of Rs. 223 Crores.

“The above mentioned acts of omission and commission on the part of Mohammad Shafi Dar Chairman J&K State Cooperative Bank, Raj Bagh, Srinagar and others in conspiracy with Mir constitute and offences punishable u/s 5(1)(d) r/w section 5(2) P.C. Act and sections 465, 467, 468, 471, 120-B RPC, resulting in loss of Rs. 223 crores to the Bank. Accordingly, FIR No. 04/2020 P/S ACB was registered and investigation taken up,” the Bureau statement said.

During investigation, the ACB spokesperson said it has been found the accused Hilal Ahmad Mir had managed to get issued a fake and fictitious Registration certificate bearing Registration No. ARK/SS/3, dated 31.03.1994 and on the basis of that fake and fictitious Certificate of Registration loan to the tune of Rs. 223 crores was sanctioned in favour of the non-existent society without adhering to the codal formalities and without any proper security.

“The loan amount was disbursed into the accounts of the land owners but the land has not been mortgaged to the bank. Further, investigation conducted by the Bureau has been successful in unearthing the siphoned out funds to the tune of Rs. 223 crores and amount to tune of Rs. 187 Crore have been frozen by ACB,” the statement said.

It said that during investigation, the accused man person Hilal Ahmad Mir was arrested on 14-05-2020 to affect the recovery of documents required in the case which are purportedly lying in their possession and also to unearth the modus operandi, and the end use of funds and quid pro quo if any obtained.

“He was remanded to police custody till 18-05-2020. The interrogation of the accused person is in progress to ascertain further leads in the matter. More arrests are likely as the investigation progresses in this case,” the Bureau statement added.

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