Rs 223 Crore Bank Fraud: Ex-Chairman Goes Into Hiding


Crime Branch Issues Lookout Notice, Announce Reward

Srinagar: The Anti-Corruption Bureau (ACB) probing the whopping Rs 230 crore fraud case, issued on Tuesday a lookout notice against the former chairman of the J&K State Cooperative Bank, accused in the case.

An ACB spokesperson told Kashmir Observer today that the former bank chairman Mohammad Shafi Dar has gone into hiding after the high court quashed his FIR on May 27, last month. The Bureau, he said has issued a lookout notice for him to take the ongoing probe to its logical conclusion.

“When the case was filed against him, he was the chairman of the bank. Later, he was sacked,” the spokesperson said.

In the lookout notice issued today, the ACB has said that if any person has information about the whereabouts of the accused Mohammad Shafi Dar, the same should be communicate to the probe agency through email, Whatsapp or toll free number.

“Any person giving the information shall be suitably rewarded and his identity will be kept secret,” the notice read.

It added that the former chairman was wanted in case FIR No. 04/2020 u/s 5(1) (d) r/w Section 5(2). PC Act, Sections 465,467,468,471,120-B/RPC Police Station, Anti-Corruption Bureau, Srinagar.

The 223 crore scam was unearthed by the Bureau in March this year, involving many bank officials, including the ex-chairman Mohammad Shafi Dar and Hilal Ahmad Mir, the chairman of non-existent Cooperative Society named River Jhelum Cooperative house Colony at Shivpora Srinagar, who was arrested on May 18. The ACB has already filed a case against Dar, Mir and other accused.

“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 statement had said.

It added 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 had said.

It had further added 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 had 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 had added.

Be Part of Quality Journalism

Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast.



Observer News Service

Leave a Reply

Your email address will not be published.