J&K Bank Loan Fraud case: ED attaches property worth over ₹193 crore

The fraud involved the sanctioning of loan to the tune of ₹250 crore (disbursement amount ₹ 223 Crore), in 2019, to a fake cooperative society named River Jehlum Co-operative House Building Society, Shivpora, Srinagar, (J&K) by the then Chairman of JKSTCB

Directorate of Enforcement (ED) on Friday provisionally attached immovable property in the form of land admeasuring 257 kanal and 19 marlas at Shivpora, Srinagar, which is valued at ₹193.46 crore, in a Prevention of Money Laundering Act (PMLA) case related to the financial fraud committed with Jammu and Kashmir State Cooperative Bank (JKSTCB).

Two persons Mohammad Shafi Dar, chairman of JKSTCB and Hilal Ahmad Mir, chairman of fake River Jehlum Co-operative House Building Society were also arrested and sent to judicial custody till December 20. (iStock)

The fraud involved the sanctioning of loan to the tune of ₹250 crore (disbursement amount ₹ 223 Crore), in 2019, to a fake cooperative society named River Jehlum Co-operative House Building Society, Shivpora, Srinagar, (J&K) by the then Chairman of JKSTCB.

“ED had initiated an investigation based on FIR and consequent chargesheets filed by LEA, Srinagar, invoking various sections of Ranbir Penal Code (RPC) and Jammu & Kashmir Prevention of Corruption Act (JK PC Act) Samvat 2006 (Corresponding to IPC and PCA) against five accused persons Hilal Ahmad Mir (chairman of River Jehlum Co-operative House Building Society), Abdul Hamid Hajam (secretary of River Jehlum Co-operative House Building Society), Mohammad Mujeeb Ur Rehman Ghassi (the then registrar of cooperative societies, J&K), Syed Ashiq Hussain (the then deputy registrar of co-operative societies, J&K) and Mohammad Shafi Dar (the then chairman of JKSTCB).

“ED investigation revealed that the money derived out of the said fraud was utilised for acquiring the above-mentioned immovable property,” the enforcement directorate said in a statement adding that earlier searches and surveys were also conducted at different locations and evidence in the form of incriminating documents and digital devices were seized.

Two persons Mohammad Shafi Dar, chairman of JKSTCB and Hilal Ahmad Mir, chairman of fake River Jehlum Co-operative House Building Society were also arrested and sent to judicial custody till December 20. “Further investigation is under progress.”