Probe reveals bogus JKCA accounts

Ishfaq Tantry

Tribune News Service

Srinagar, May 27

The ongoing investigation into the multi-crore cricket scam involving ex-office bearers of the Jammu and Kashmir Cricket Association (JKCA) has revealed existence of many bogus accounts operated in the name of the association.

As per the investigation, amount to the tune of crores of rupees had been withdrawn through these accounts without reflecting the transactions in the annual financial statements of the cricket body.

It has also been revealed that JKCA funds had been allowed by the association to remain in “private pockets”, including some ex-office bearers, without proper accounting.

The explosive details came to the fore even as the Special Investigating Team (SIT) of the Jammu and Kashmir Police probing the “cricket scam” has sought custodial interrogation of former general secretary of the JKCA Mohammad Saleem Khan and former treasurer Ahsan Ahmad Mirza.

The probe into the scam is being monitored by the High Court which is hearing a PIL into the matter. The court has also issued notices to the respondents, including former Chief Minister Farooq Abdullah, who is currently the head of JKCA.

The scam involves payment of Rs 113.67 crore by the Board of Control for Cricket in India (BCCI) to the JKCA from 2002 to 2011 and subsequent misappropriation of these funds to the tune of over Rs 40 crore.

Official documents including bank statements, financial statement of the JKCA seized by the investigators and accessed by The Tribune reveal that during the period, the cricket body also received Rs 1.32 crore as additional income in the shape of tournament fee, fee from affiliated clubs and interest from the bank deposits.

“In view of fund allotment position provided by the BCCI (from 2002 to 2011) a test check of the JKCA records (taken up with reference to the balance sheets prepared by the JKCA) reveal that these balance sheets do not reflect proper picture of the JKCA accounts,” says a report prepared by the investigators.

“Some existing bank accounts have evaded picture and are neither accounted for in final accounts, cash balances at a particular date, nor have been carried forward to next date/year, (thus) remaining silent in respect of outstanding balances against individuals/functionaries, which has made the accounting procedure more doubtful,” the report adds.

To present an example, the report says that scrutiny of records, copies of balance sheets of the JKCA revealed that “two parallel balance sheets” for the same year — 2001-2002 (as on 31/03/2002) — had been prepared by the JKCA and authenticated by some Gullian and Majid Chartered Accountants on different dates respectively.

“The figures reflected therein (in two balance sheets) are contradictory and confusing,” says the report, adding that one of the balance sheet reports dated October 3, 2002 reflects an outstanding amount of Rs 58,91,004.60 against Ashutosh Sharma, ex-treasurer, JKCA, in addition to Rs 2,00,000 outstanding against him.

“The fate of this amount (Rs 58.91 lakh) has remained under clouds and related adjustment is not coming forth during ensuing years,” stated the report.

While providing a list of 20 persons having huge outstanding amounts towards the JKCA, including Ashutosh Sharma and one Mehboob Iqbal (Rs 13.34 lakh), the reports notes that mention of these outstanding amounts against some of the persons in the list, including Sharma and Iqbal, also figured for discussion during a JKCA meeting on April 17, 2006, proving that the amount was still outstanding as on date and “nullifies” the correctness as “adjusted” amount.

“The public money has thus been allowed by the JKCA to remain in private pockets,” the report notes, adding that some of the operative bank accounts of the JKCA ( SB-11554, J-K Bank Air Cargo, Srinagar & SB-3788 PNB, Purani Mundi, Jammu)…have not been reflected in the balance sheet/annual account statement of the JKCA fort the financial year 2002-03.

“It transpires that proper financial picture of JKCA accounts has not been reflected accurately, giving a loop way to any kind of misappropriation/embezzlement,” investigators say in the report while seeking custodial interrogation of two ex-office bearers of the JKCA and prime accused Khan and Mirza, who are currently on pre-arrest bail.