J&K co-op bank ex-chairman held in ₹223-cr loan fraud

MOHD SHAFI DAR

WAS EVADING HIS ARREST SINCE THE REGISTRATION OF

THE CASE AGAINST HIM

JAMMU : The anti-corruption bureau (ACB) on Wednesday arrested former chairman of J&K Cooperative Bank Limited in connection with the ₹223-crore loan scam.

A preliminary probe was conducted by the ACB on the allegations that Mohd Shafi Dar, in connivance with some officials, had sanctioned ₹223 crore fraudulently in favour of a non-existent ‘River Jhelum Co-operative House Colony’ at Shivpora, Srinagar, portrayed to be run by one Hilal Ahmad Mir of Magarmal Bagh in Srinagar.

Dar was evading his arrest since the registration of the case against him and he was taken into custody after his arrest on Wednesday.

In the preliminary inquiry, it was revealed that the chairman of the said society had moved an application to secretary cooperatives, administration department of co-operative societies, seeking directions to the J&K Cooperative Bank Ltd for grant of financial assistance to the tune of ₹300 crore 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 by J&K cooperative societies registrar for taking up the matter with the bank. Accordingly, J&K Cooperative Bank, Srinagar, sanctioned a loan of ₹223 crore without adhering to any codal formalities, including obtaining details of the society such as balance sheet, profit and loss account business, activities being done by the Society, PAN number, income tax return, details of construction of the board resolutions, etc.

It also surfaced that the said housing society was not even registered with J&K co-operative societies registrar. Hilal Ahmad Mir had prepared fake documents and managed to get the loan.

A case under relevant sections of the Prevention of Corruption Act and sections 465, 467, 468, 471 and 120-B of the Ranbir Penal Code has been registered against Dar, Mir and others.