ACB Files FIR In Rs 1000 Crore Loan Default Case

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Probe Reveals Funds Diverted, State Land Encroached; Sold Illegally

Srinagar: The anti-corruption bureau (ACB) on Saturday filed a case into a multi-million loan default case in which a large amount of funds were diverted and state land was encroached and sold illegally.

On the basis of a complaint received from the government’s general administration department (GAD) to look into the allegations of defaulted in repayment of loan amount of Rs. 40.63 Crore raised from HUDCO by the J&K Cooperative Housing Corporation (JKCHC) in which the J&K government was the guarantor and owned 70 % of the capital, a preliminary enquiry was registered by the anti-graft agency, an ACB spokesperson said Saturday.

The GAD complaint, he said, further revealed that on July 26, 2017, an amount of Rs. 90 crores, including interest was outstanding against the Corporation.

“HUDCO had further blacklisted the government till liquidation of the outstanding loan and no further loan facilities were granted by HUDCO for execution of various projects in J&K,” the ACB spokesperson said.

He further said that the investigations revealed that JKCHC availed around 27 loan facilities from HUDCO from the year 1991 to 2001 for acquisition and development of lands for constructing housing colonies in J&K.

Among the prominent colonies were Kud Housing Colony, Davik Housing, Kalu Chak , Swarn Vihar, Tawi Vihar Housing Colony, Swarn Vihar, Peer Bagh Housing Colony etc.

“JKCHCL defaulted in payment in the loan and as on 31.11.2020 an amount of Rs. 10,06,06,80,678/-(Rs 1006 crore approximately) is outstanding for repayment to HUDCO,” the bureau spokesperson said.

The investigations carried out by the ACB, he said, also revealed that the Chairman, Managing Directors and other officials who were at the helm affairs in JKCHCL had diverted and misappropriated the loan amounts to the tune of Rs 23.12 crores for various other purposes.

“It indicated that the Management of JKCHCL in conspiracy with each other and other unknown officials had deliberately defaulted in the repayment of the loans due to which the accounts became NPA and the outstanding amount created,” he said.

“The enquiry has revealed that there has been illegal modification in the norms and bye laws of JKCHCL and encroachment upon Govt. land and community land for development of housing schemes which were later sold off for a profit. Even the OTS amount arrived at with the intervention of the Govt. was not repaid by the JKCHCL,” he added.

Following the startling revelations during the probe, the ACB spokespersons aid that an FIR was registered against the then Chairman, MD Brij Bhushan Sharma and other officials of the Management of the JKCHCL and unknown officials of the Govt. u/s 5(1)(c), 5(1)(d) read with sections 5(2) of JK PC Act Svt 2006 and Ss. 409, 120-B RPC.

He further after obtaining warrants from the court, searches were conducted at the residence and office of the then MD JKCHCL.

“Incriminating documents and articles have been recovered in the searches conducted. Further investigation of the case is going on,” the ACB spokesperson added.

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