Son of ex-finance minister held for Rs 177-cr bank fraud

Our Correspondent

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Jammu, January 16

Jammu and Kashmir’s anti-graft body, Anti-Corruption Bureau (ACB), arrested Hilal Rather, son of former Finance Minister of J&K and senior NC leader Abdul Rahim Rather, in an alleged multi-crore bank fraud case related to his ambitious township project “Paradise Avenue” here today.

Hilal Rather was arrested in a case related to the alleged misappropriation of crores of rupees from the term loans, running into Rs 177 crore, sanctioned by Jammu and Kashmir Bank for his project in the year 2012.

Hilal Rather, who also owned Simula Group of Companies, was being questioned for the past few months by the ACB in connection with the bungling of crores of rupees from the loan amount sanctioned by the New University Campus branch of J&K Bank for the construction of flats under the name of “Paradise Avenue”.

He was not divulging details of the property raised and other transaction related to funds meant for construction.

The ACB revealed that the Paradise Avenue, a partnership concern of Hilal Rather, Dr Rizwan Raheem Dar of Sanant Nagar Srinagar, Ghulam Mohd Bhatt of Baramulla Kashmir, Daljeet Wadhera and Deepshikha Jamwal of Jammu, was sanctioned a term loan of Rs 74.27 crore in the first phase and in relaxation to the credit policy of the bank which restricts loan to a partnership firm at Rs 40 crore and the loan was approved by the Board of Directors of J&K Bank despite the fact that he had already entered into a one-time settlement (OTS) with State Financial Corporation in the past.

The remaining loan amount was granted by the board of directors despite the fact that the repayments of the first loan taken were not complete, the ACB spokesperson said.

It has also been revealed that the funds diverted have been used to purchase huge properties abroad, holidaying abroad with family and friends and also for other entertainment activities.

All loan amounts availed by Hilal Ahmed Rather to the tune of Rs 177 crore have become non-performing assets (NPAs). Hilal Rather was taken into custody for further questioning by cops.