Ex-chairman of J&K Cooperative Bank arrested in Rs 223 cr loan fraud : The Tribune India

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TRIBUNE NEWS SERVICE

JAMMU, JUNE 3

The Anti Corruption Bureau (ACB), today arrested the former chairman of J&K Cooperative Bank Limited (JKCBL), Mohd Shafi Dar, in much-publicised Rs 223-crore bank loan fraud.

Dar was evading his arrest since the registration of the case against him and he was taken into custody after his arrest today.

As per the ACB case Dar in connivance with the officials and beneficiary of a non-existent cooperative society had sanctioned an amount of Rs 223 crores fraudulently in favour of a non-existent “River Jhelum Co-operative House Colony at Shivpora Srinagar” run by one Hilal Ahmad Mir of Magarmal Bagh Srinagar.

In the preliminary inquiry, it was revealed that the chairman of the Society had moved an application to Secretary Cooperatives, Administration Department of Co-operative Societies, seeking directions to the J&K Cooperative Bank Ltd for grant of financial assistance to the tune of Rs 300 crores for taking over possession of 300 kanals of land located in the outskirts of Srinagar for construction of a Satellite Township.

The application was endorsed by Registrar Cooperative Societies J&K for taking up the matter with the Cooperative Bank.

Accordingly, J&K Cooperative Bank Srinagar sanctioned a loan to the tune of Rs 223 crores without adhering to any codal formalities, including obtaining details of the Society viz balance sheet, profit and loss account business, activities being done by the Society, PAN number, Income Tax return, details of construction of the Board Resolutions, etc.

During inquiry, it also surfaced that River Jhelum Cooperative House Building Society was not even registered with Registrar Co-operative Societies J&K.

“The Chairman of the so called River Jhelum Cooperative House Building Society Ltd. Hilal Ahmad Mir by acting in league with Chairman of J&K Co-operative Bank Srinagar 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,” an official spokesperson said.

“The loan amount was disbursed into the accounts of the land owners but the land has not been mortgaged to the bank. Following further investigation, the ACB has been successful in unearthing the siphoned off funds and an amount to tune of Rs 187 crore have been frozen,” the spokesperson said.

On May 14, the chairman of the society was arrested to recover the documents required in the case which were purportedly lying in their possession and also to unearth modus operandi, and the end use of funds.

 





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