J&K: ED raids six locations in a money laundering case

| Updated: 30 November, 2023 2:08 pm IST
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ACB has already filed chargesheet against Mohd Shafi Dar, Hilal A Mir (Chairman of the Society) and others for commission of offences under Sections of IPC and Corruption Act.

 

SRINAGAR: The Enforcement Directorate (ED) on Thursday conducted raids at six locations in Srinagar in connection to a case related to bank fraud of more than Rs 250 Crore in the name of fictitious River Jhelum Cooperative House Building Society.

In a statement, a spokesperson said that the Enforcement Directorate has raided at least six locations in Jammu and Kashmir in connection with the ‘Money Laundering Case’, under Section 17 of PMLA including the premises of the former Chairperson of J&K Bank.

ACB has already filed chargesheet against Mohd Shafi Dar, Hilal A Mir (Chairman of the Society) and others for commission of offences under Sections of IPC and Corruption Act.

During a preliminary investigation conducted by the ACB, it had surfaced that 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.

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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 statements, activities being done by the Society, PAN No., Income Tax return, details of Construction of the Board Resolutions, etc.

During ACB enquiry it also surfaced that River Jhelum Cooperative House Building Society has not been even registered with Registrar Co-operative Societies J&K. The Chairman of the so-called River Jhelum Cooperative House Building Society Ltd. Hilal Ahmad Mir S/o Sana-ullah Mir R/o Magarmal Bagh, Srinagar 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.

Accordingly, ACB registered an FIR section 5(2) P.C. Act and IPC sections 465, 467, 468, 471, 120-B RPC, resulting in loss of Rs. 223 crores to the Bank. at P/S ACB and an investigation was taken up against Mohammad Shafi Dar, Chairman J&K State Cooperative Bank, Raj Bagh, Srinagar, and others in conspiracy with Hilal Ahmad Mir.

During investigation, it has been found that the so-called 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 March 1994 and on the basis of that fake and fictitious Certificate of Registration loan to the tune of Rs. 223 crores were 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 landowners, 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 the tune of Rs. 187 Crore have been frozen by ACB.

Mir, Chairman of the Jhelum Cooperative House Building Society was arrested on 14 May 2020 while the documents required in the case, which were lying in their possession, were recovered by the Anti-Corruption Bureau.

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