In a significant development, the Enforcement Directorate (ED) has taken action in a financial fraud case related to the J&K State Cooperative Bank (JKSTCB). The provisional attachment of immovable property in Shivpora, Srinagar, valued at Rs. 193.46 Crore, comes as a consequence of a PMLA investigation.
Background of the Fraud:
The financial irregularities under scrutiny involve the sanctioning of a loan amounting to Rs. 250 Crore (with a disbursement of Rs. 223 Crore) in 2019. The funds were allegedly diverted to a fake cooperative society named River Jehlum Co-operative House Building Society, Shivpora, Srinagar. The individuals responsible for this fraudulent transaction include the then Chairman of JKSTCB and others.
ED’s Investigative Approach:
The ED commenced its inquiry following the submission of FIR and chargesheets by the Law Enforcement Agency (LEA) in Srinagar. The charges encompassed various sections of the Ranbir Penal Code (RPC) and the Jammu & Kashmir Prevention of Corruption Act (JK PC Act). The five individuals accused in the case are Hilal Ahmad Mir (Chairman of River Jehlum Co-operative House Building Society), Abdul Hamid Hajam (Secretary of the counterfeit society), Mohammad Mujeeb Ur Rehman Ghassi (former Registrar of Cooperative Societies, J&K), Syed Ashiq Hussain (former Deputy Registrar of Co-operative Societies, J&K), and Mohammad Shafi Dar (former Chairman of JKSTCB).
Utilization of Fraudulent Proceeds:
The ED’s investigation uncovered that the money derived from the fraudulent loan transaction was utilized to acquire the immovable property in Shivpora, Srinagar, which has now been provisionally attached. Before this, search and survey operations were conducted at various locations, resulting in the seizure of incriminating documents and digital devices.
Legal Actions and Arrests:
In connection to the fraud, two key individuals have been arrested. Mohd Shafi Dar, Chairman of JKSTCB, and Hilal Ahmad Mir, Chairman of the fake River Jehlum Co-operative House Building Society, are currently in judicial custody until 20/12/2023. The legal proceedings against the accused individuals are expected to shed light on the intricate details of the financial fraud.
The provisional attachment of the immovable property in Shivpora marks a crucial step in the ED’s efforts to unravel the complexities of the financial fraud involving the J&K State Cooperative Bank. As the investigation progresses, it will be crucial to ensure accountability and justice for the misappropriation of funds, exemplifying the commitment to upholding the integrity of financial institutions and safeguarding public trust.
