Srinagar, Dec 02 – The Enforcement Directorate (ED) have arrested two persons including former J&K Co-operative Bank chairman Mohammad Shafi Dar in an alleged Rs 250-crore in money laundering case in Jammu and Kashmir, officials said on Friday.
They said the arrests were made during searches at eight locations in Srinagar.
Those arrested included Dar , the then Chairman of JKSTCB and Hilal Ahmad Mir, the Chairman of fictitious firm- River Jehlum Co-operative House Building Society,
“ The arrests were made under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in a case related to the fraudulent sanctioning of loan by JKSTCB to the tune of Rs. 250 Crores in 2019 to a fake cooperative society named River Jehlum Co-operative House Building Society, Shivpora, Srinagar,” officials said.
During the course of search operations, several incriminating documents, property documents, including digital devices, have been recovered and seized.
Both the arrested persons were produced on Friday before the Special PMLA Court, Srinagar, who has ordered the accused to be in ED Custody till 02.12.2023 and directed for further hearing in the matter.
The ED initiated investigation on the basis of FIR and consequent chargesheets invoking various sections of Ranbir Penal Code (RPC) & Jammu & Kashmir Prevention of Corruption Act (JK PC Act) Samvat 2006 (Corresponding to IPC and PCA) against five accused persons viz. Hilal Mir, Abdul Hamid Hajam Secretary of River Jehlum Co-operative House Building Society, Mohammad Mujeeb Ur Rehman Ghassi ,the then Registrar of Cooperative Societies, J&K), Syed Ashiq Hussain ,the then Dy. Registrar of Co-operative Societies, J&K and Mohammad Shafi Dar.
“ED investigation revealed that the aforementioned persons had managed to fraudulently get the sanction of a loan of Rs.250 Crore from JKSTCB in the name of a fake society. The same was siphoned off as payments made towards purchase of land parcels, without any collateral security and overlooking all regulatory procedures, and in pursuance of the criminal conspiracy relating to offence of money laundering under PMLA, 2002,” officials said.
