Co-operative society chief held in loan scam

Tribune News Service

Srinagar, May 18

The Anti-Corruption Bureau (ACB), J&K, has arrested the chairman of a cooperative housebuilding society and recovered Rs 187 crore during the investigation of a land scam case.

A preliminary inquiry was conducted by the Anti-Corruption Bureau, Jammu, on the allegations that the Chairman of J&K Co-operative Bank Ltd in connivance with officials/beneficiary of a non-existent society, River Jhelum Cooperative House Colony at Shivpora, Srinagar, run by Hilal Ahmad Mir of Magarmal Bagh, Srinagar, had sanctioned Rs 223 crore fraudulently in favour of the society.

“During the inquiry, it was revealed that the chairman of the society had moved an application for grant of financial assistance of Rs 300 crore for taking over the possession of 300 kanals of land located on the outskirts of Srinagar for the construction of a satellite township,” a spokesman for the ACB said.

Accordingly, J&K Cooperative Bank, Srinagar, sanctioned a loan of Rs223 crore without following the procedure.

During the inquiry, it also surfaced that the chairman of the society, by acting in league with Chairman of J&K Cooperative Bank Srinagar, Mohammad Shafi Dar, and others, had prepared a fake and fictitious registration certificate and managed the sanction of a loan of Rs 223 crore,” he added.