The chairman of the J&K Co-operative Bank was charged on Monday by the Anti-Corruption Bureau (ACB) for allegedly sanctioning a loan of Rs 223 crores to a non-existent co-operative society, officials said in Srinagar.
"On the outcome of a preliminary enquiry conducted by the ACB, it surfaced that chairman of the J&K Co-operative Bank Ltd., in connivance with officials and beneficiaries, had sanctioned Rs 223 crore fraudulently in favour of a non-existent co-operative society - River Jehlem Co-operative Housing Building Society," a spokesperson said.
It was further revealed that the chairman of the so-called society had moved an application in the Department of Co-operative Societies, seeking directions to the J&K Cooperative Bank for grant of financial assistance of Rs 300 crore for taking over possession of 300 kanals of land on the outskirts of the city for construction of a satellite township.
"J&K Cooperative Bank, Srinagar, sanctioned a loan to the tune of Rs 223 crores without obtaining any details of the society like balance sheet, profit and loss account business, activities being done by the society, PAN number, Income Tax Returns details and details of construction of the board, and board resolutions among other things," the official said.
During the inquiry, it surfaced that the River Jehlem Co-operative Housing Building Society was not even registered with Jammu and Kashmir's Registrar Co-operative Societies.
"The chairman of the so-called society, by acting in league with chairman of J&K Cooperative Bank and others, had prepared fake and fictitious registration certificates and managed the sanction of loan amount to the tune of Rs 223 crores," he said.
The ACB spokesman said the acts of omission and commission on the part of Mohammad Shafi Dar, chairman of J&K State Co-operative Bank in Srinagar and others in conspiracy, resulting in the loss of Rs 223 crores to the bank, constitute punishable offences.
Accordingly, a case has been registered and further investigation is underway, he said, adding, during the course of investigation, residential houses and offices of the accused persons were searched by the teams of ACB Kashmir and the seized documents are being scrutinised.