SRINAGAR: The Anti-Corruption Bureau registered on Monday a case against J&K State Cooperative Bank chairman M Shafi Dar for sanctioning a loan of Rs 223 crore in favour of a non-existent cooperative society named “River Jehlum Cooperative House Building Society” at Shivpora , Srinagar.

An ACB spokesman said its preliminary enquiry revealed that Dar, allegedly in connivance with officials of his bank and the loan beneficiary, had sanctioned the loan, allegedly fraudulently.

The bogus cooperative society was fraudulently shown as owned by one Hilal Ahmad Mir (beneficiary) of Srinagar’s Magarmal Bagh, the spokesman said.

“During the preliminary enquiry it was further revealed that the so-called chairman of the bogus society had moved an application to secretary, cooperatives, administrative department of cooperative societies , seeking directions to J&K Cooperative Bank Ltd for the grant of financial assistance of Rs 300 crore to take over possession of 300 kanals (37.5 acres) of land in Shivapora , on the outskirts of Srinagar, for the construction of a satellite township,” the ACB said.

The ACB spokesman claimed J&K Cooperative Bank, Srinagar, sanctioned Rs 223 crore without adhering to any formalities — due diligence, like obtaining its balance sheet, profit and loss statement, finding out its activities, its PAN, income tax returns, details of the board, board resolutions, etc., the spokesman added.

The inquiry also revealed that the River Jehlum Cooperative House Building Society had not been even registered with the Registrar of Cooperative Societies, J&K, the ACB statement said.

“Hilal Ahmad Mir, in league with chairman of J&K Cooperative Bank, Srinagar, Shafi Dar, and other officials, prepared fake and fictitious registration certificates and managed the sanction of a loan of Rs 223 crore,” the ACB spokesman said.

“These acts of omission and commission on the part of Shafi Dar, chairman, J&K State Cooperative Bank, and other officials, in conspiracy with Hilal Ahmad Mir, constitute offences” punishable under sections of the PC Act and the RPC, the ACB said. “Accordingly, a case (FIR No. 04/2020) was registered at police station ACB and investigation taken up,” the ACB added.

Meanwhile, ACB teams searched the residences and offices of the accused people. “Documents, etc. seized from the houses and offices are being perused,” the spokesman added.

