Bank chairman in ACB net for Rs 223-cr fraud

Tribune News Service

Srinagar, March 9

The Anti-Corruption Bureau (ACB) on Monday filed a graft case against the chairman of J&K Cooperative Bank Limited (JKCBL) for sanctioning of Rs 223 crore in favour of a non-existent cooperative society in a fraudulent manner.

Mohammad Shafi Dar, chairman, JKCBL, had sanctioned the amount in favour of the non-existent “River Jhelum Cooperative Housing Society, Shivpora Srinagar”, owned and run by Hilal Ahmad Mir of the Magarmal Bagh locality in Srinagar.

During preliminary inquiry, it was found that the so-called chairman of the society had moved an application to the Secretary, Cooperatives, Administrative Department of Cooperative Societies, seeking directions to the JKCBL for the grant of financial assistance to the tune of Rs 300 crore.

The financial assistance was sought for taking over the possession of 300 kanals located on the outskirts of Srinagar for the construction of a satellite township.

“The application was endorsed by the Registrar, Cooperative Societies, J&K, for taking up the matter with the JKCBL, which sanctioned loan to the tune of Rs 223 crore without adhering to any codal formalities, ie obtaining the details of the society,” the ACB said.

It said the bank didn’t obtain from the society its balance sheet, profit and loss account business, PAN number, income tax return, details of construction of the board, board resolutions.

“During inquiry, it also surfaced that the River Jhelum Cooperative Housing Society had not been even registered with the Registrar Cooperative Societies. The chairman (Mir) of the so-called society, by acting in league with the chairman of JKCBL and others, has prepared fake and fictitious registration certificates and managed the sanction of the loan,” it said.

The ACB has filed a case against the JKCBL chairman and the beneficiary.

The ACB said, “Residential houses and offices of the accused were searched by its teams in pursuance to search warrants issued by the court. The documents so seized are being perused and scrutinised.”