Anti Corruption Bureau (ACB) on Monday claimed to have arrested the accused involved in Rs 223 Crore fraud in Jammu and Kashmir Co-operative Bank that surfaced earlier this year.The ACB as per a statement issued to news agency—Kashmir News Observer (KNO), also claimed to have recovered Rs 187 Crore of the siphoned money, adding that the accused identified as Hilal Ahmad Mir of Magarmal Bagh Srinagar was arrested on May 14, 2020.A Preliminary Enquiry (PE) as per a statement was conducted by the ACB, Jammu on the allegations that the Chairman of J&K Co-operative Bank Ltd. in connivance with the officials, beneficiary of a non-existent Co-operative House Building Society had sanctioned an amount of Rs. 223 Crores fraudulently in favour of the said non-existent Co-operative Society under the name and style of a “River Jhelum Co-operative House Colony at Shivpora Srinagar" shown / run by one Hilal Ahmad Mir, son of Khawaja Sana-ullah Mir of Magarmal Bagh Srinagar (Beneficiary).During PE, it was further revealed that the Chairman of the said Society has moved an application to Secretary Cooperatives, Administration Department of Co-operative Societies, where under he sought directions to the J&K Co-operative Bank Ltd for grant of financial assistance to the tune of Rs. 300.00 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 to Registrar Cooperative Societies J&K for taking up the matter with Jammu and Kashmir State Cooperative Bank. Accordingly, J&K Co-operative Bank Srinagar sanctioned a loan to the tune of Rs. 223 crores without adhering to any codal formalities, i.e obtaining the details of the Society Viz. Balance Sheet, Profit and loss Account business, activities being done by the Society, PAN No., Income Tax return, details of Construction of the Board Resolutions, etc,” the statement added.
During enquiry, it also surfaced that River Jhelum Cooperative House Building Society has not been even registered with Registrar Co-operative Societies J&K, the statement said, adding that the Chairman of the 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.The above mentioned acts of omission and commission on the part of Mohammad Shafi Dar Chairman J&K State Cooperative Bank, Raj Bagh, Srinagar and others in conspiracy with Mir constitute and offences punishable u/s 5(1)(d) r/w section 5(2) P.C. Act and sections 465, 467, 468, 471, 120-B RPC, resulting in loss of Rs. 223 crores to the Bank. Accordingly, FIR No. 04/2020 P/S ACB was registered and investigation taken up.During investigation, it has been found that the Society has not been registered with Registrar Co-operative Societies J&K. Accused Hilal Ahmad Mir had managed to get issued a fake and fictitious Registration certificate bearing Registration No. ARK/SS/3, dated 31.03.1994 and on the basis of that fake and fictitious Certificate of Registration loan to the tune of Rs. 223 crores was sanctioned in favour of the non-existent society without adhering to the codal formalities and without any proper security.The loan amount was disbursed into the accounts of the land owners but the land has not been mortgaged to the bank. Further, investigation conducted by the Bureau has been successful in unearthing the siphoned out funds to the tune of Rs. 223 crores and amount to tune of Rs. 187 Crore have been frozen by ACB, the statement added.“During investigation, the accused person Hilal Ahmad Mir was arrested on 14-05-2020 to affect the recovery of documents required in the case which are purportedly lying in their possession and also to unearth the modus operandi, and the end use of funds and quid pro quo if any obtained. He was remanded to police custody till 18-05-2020. The interrogation of the accused person is in progress to ascertain further leads in the matter. More arrests are likely as the investigation progresses in this case,” it added—(KNO)