The anti-corruption bureau (ACB) of Jammu and Kashmir (J&K) has arrested the accused Hilal Ahmad Mir, in relation to Rs. 223 crore fraud reported earlier this year in J&K Co-operative Bank. In an official statement, ACB informed that the accused has been arrested on 14th May in Sri Nagar. As per ACB, Hilal Ahmad in collusion with the officials of J&K Co-operative Bank was able to receive a loan of Rs. 223 for his non-existent Co-operative Society under the name 'River Jhelum Co-operative House Colony at Shivpora Srinagar.
The bureau also said that even though the loan amount was disbursed, the land was never mortgaged to the bank. The spokesperson said, "Further, an investigation conducted by the Bureau has been successful in unearthing the siphoned out funds to the tune of Rs 223 crores and amount to the tune of Rs 187 Crore have been frozen by ACB."
ACB had registered a case against J&K Co-operative Bank Chairman Mohammad Shafi Dar and other bank officials earlier in March, after their primary investigation revealed that Dar, in connivance with the officials and the beneficiary, had fraudulently sanctioned Rs 223.00 crores in favor of Mir.
According to the ACB, Hilal had submitted an application to the Director of Cooperatives, the Administrative Department of Co-operative Societies, and requesting guidance from J&K Cooperative Bank Ltd to provide financial assistance to Rs 300 crores for the purchase of 300 channels of land in the outskirts of Srinagar for the development of a satellite township. The investigation further revealed that the Housing Society had not been even registered with Registrar Co-operative Societies, J&K.
The statement added, "The application was endorsed to Registrar Cooperative Societies J&K for taking up the matter with Jammu and Kashmir State Cooperative Bank. Accordingly, J&K Cooperative Bank Srinagar sanctioned loan to the tune of Rs 223 Crores without adhering to any codal formalities including not obtaining the details of the society viz. balance sheet, profit and loss account, activities being done by the Society, PAN details, Income Tax return, details of Construction of the Board, Board Resolutions, etc."