Rs 223 Cr loan scam in J&K Cooperative Bank

Look-out notice against Ex-chairman of Cooperative Bank

Srinagar, June 02: In a major development in multi-crore Cooperative Bank loan scam, the Anti-Corruption Bureau (ACB) on Tuesday issued a look-notice issue against its former chairman, Muhammad Shafi Dar.

The premier anti-graft body today issued a look-out notice against Dar, who is one of the main accused in the Rs 223 crore loan scam. Sources in the ACB disclosed that they have carried out raids in different places in Kashmir to nab the accused.

According to hue and cry notice, Dar who is resident of Baghat Bazulla, is wanted in case FIR number 04/2020 under section 5 (1) (d) r/w section 5 (2) PC Act, sections 465, 467, 468, 471, 120-B/RPC registered at Police Station, ACB Srinagar.

The ACB has decided to reward any person who will give tip off about Dar's whereabouts. “Any person giving the information shall be suitably rewarded and his identity will be kept secret,” reads the notice.

According to the notice, any person having knowledge/information about the whereabouts of the accused may inform/communicate through email/WhatsApp/toll free number to ACB.

The probe carried out by the premier agency has revealed that Muhammad Shafi Dar, Chairman J&K Co-operative Bank Ltd, Rajbagh sanctioned Rs 223.00 crore fraudulently in favour of non-existent Co-operative Society ‘River Jhelum Co-operative house Colony' at Shivpora Srinagar.

It also revealed that the loan was sanctioned without adhering to any codal formalities like obtaining the details of the society such as its balance sheet, profit and loss account business, activities being done by it, income tax returns and details of construction of the board resolutions, the spokesman said.

It is worthwhile to mention here that J&K High Court  has dismissed a plea by Mohammad Shafi Dar seeking quashing of FIR by the ACB.  “The report of Enquiry Officer (Deputy Registrar (Counsel) Cooperative Societies J&K) dated 5th February 2020 is self-explanatory and speaks of voluminous, and if discussed here would open a pandora's box for discourse, discussion and threadbare examination and trial, which is the exclusive domain of Investigating Agency and Trial Court, and not that of this Court in exercise of inherent powers under Section 482 CrPC, ”a bench of Justice Vinod Chatterji Koul in a judgment on Dar's plea.

In the past 13 months, the ACB  has  unearthed multi-crore loan scams and irregularities in J&K Bank and other financial institutions.