ED: Industrialist caused ₹100 cr loss to J&K Bank

MUMBAI: Nihal Garware of Garware Industries, who was allegedly appointed as additional director of Jammu and Kashmir bank on the recommendation of former chief minister of Jammu and Kashmir Omar Abdullah’s government, was instrumental in causing a loss to the bank to the tune of more than ₹100 crore, the Enforcement Directorate (ED) has said.

During the investigation, Garware admitted that former CM Abdullah is his friend and he was in the position of having indirect control or authority on the J&K bank at the time of his appointment, states the prosecution complaint of ED filed before a special court in Mumbai.

The agency had previously questioned Abdullah in the case, but his statement has not been included in the prosecution complaint. “It’s a legal matter that is under investigation & Omar Abdullah is cooperating fully with the investigating authorities,” said NC spokesperson Imran Dar. Garware was arrested by ED on March 22 this year on the charges of money laundering after the agency believed he was instrumental in buying a property for the bank in the BKC area in 2010 at a much exorbitant consideration.

In return, ED has claimed that Garware received kickbacks to the tune of ₹12.82 crore. The case was first registered by CBI on November 11, 2021, against Ackruti Gold Builders and unknown persons over corruption allegations. It was alleged that the bank purchased a property in BKC, Mumbai in 2010 at a much higher price.

The bank had in 2008 published a notice inviting parties for the sale of integrated office premises at Bandra-kurla measuring 20000 sq ft. space for the bank. Bank received applications from 25 builders and the lowest rate was ₹25,000 per sq ft.

On July 28, 2009, the bank received a letter from M/S Ashapura

building ₹2,25,000 per sq ft. The bank sat on the proposal until January 2010, and then the bank published another advertisement for the purchase of the place. In 2010, the CBI claimed the bank purchased the entire building at the rate of Rs 26,000 per sq ft and the total area was 42,000 sq ft.

After the negotiation, the property was purchased for a total of ₹180.57 crores.

ED claimed that Nihal himself had admitted his close association with Abdullah in his statement where he said, “His friend and chief minister of Jammu and Kashmir was in the position of having indirect control or authority on the J&K bank at the time of his appointment.”

Nihal Garware bought a property in Delhi through the money he received from the deal as a kickback, ED said. “Garware with the help of his CA received cash in his various companies through which he made payment for the property he purchased in Delhi,” agency said.