Anti-Corruption Bureau (ACB) has registered a case against deputy Mayor Srinagar Municipal Corporation, J&K Bank and government officials for “illegal appropriation of subsidy with inflated project cost for establishment of CA storage at Lassipora, Pulwama.”
“CaseFIR No. 3/2019 u under section 5(1) (d) P.C Act Samvat 2006, punishable u/S5(2) of the Act r/w 420 & 120-B RPC has been registered in Police Station Anti-CorruptionBureau, South Kashmir (Anantnag) against Shiekh Imran Director M/S Kehwa SquarePvt. Ltd. Bohri Kadal Srinagar, officers of J&K Bank and other Govtofficials, for illegal appropriation of subsidy with inflated project cost forestablishment of CA storage at Lassipora, Pulwama,” ACB said, in a statement onSaturday.
Duringverification conducted by Anti-Corruption Bureau Kashmir, it came to light thatImran had submitted a proposal/ DPR to J&K Bank for establishment of CAstorage under the name and style of M/S Kehwa Square Pvt. Ltd. at Lassipora,Pulwama.
“Asper the norms of Mission for Integrated Development of Horticulture (MIDH), aJoint Inspection Team (JIT) of various experts and government officials inassociation with Shiekh Imran Director M/S Kehwa Square Pvt. Ltd. conductedspot inspection of the site,” said the statement.
Theassessed cost of the project to Rs.33.00 crores with the subsidy component thereof calculated to Rs. 16.50 croresi.e. 50% of estimated project cost (EPC), purportedly as per the norms ofHorticulture Mission for North East & Himalayan (HMNEH) States was sent toempowered monitoring committee of MIDH, Govt. of India, for final approval, itadded.
Subsequentto its approval, the State Government also constituted a Committee which didspot inspection and physical verification and recommended release of subsidy asper norms without altering or amending the component wise value of machineryand civil works, etc.
“Asper norms, the subsidy component, after its release by the NationalHorticulture Board (NHB), the same was required to be kept in a separateaccount by the credit provider Bank termed as subsidy reserve fund withdetailed terms and conditions for adjustment of the subsidy.”
Duringenquiry, the statement added, it also came to light that M/S Kehwa Group has sixmore business units. “Sheikh Imran has raised varied loan facilities / ODs(overdrafts) for these business units. The liabilities on account of loanaccumulated to Rs. 138 crores. Since, one of the company Kehwa Square hadturned NPA including its sister business concerns, Sheikh Imran sought one timesettlement with J&K Bank authorities. The bank finally granted wave offliabilities of Rs.33 crores.”
Pursuantto the one time settlement, it said, M/S Kehwa group was asked to deposit Rs.105 crores in two instalments with the first instalment of Rs. 50 crores to bepaid by 25.03.2017.
“Theenquiry further reveals that in order to usurp the subsidy component under thegarb of promoting Horticulture activity/storage facility with the connivance ofthe Horticulture Officers and Bank Officials, the proprietor of M/S KehwaSquare Pvt. Ltd. Shri Sheikh Imran and his partners to declare the CA Store asNPA without paying even a single instalment towards the bank while as the costof the project assessed subsequently during enquiry by ACB was found much lowerthan the projected cost,” read the statement.
Itsaid the enquiry further revealed that this “criminal design” of Sheikh Imranand his partners was actually executed with the active support of the officials of J&K Bank throughbusiness unit namely M/S Go Fresh whose proprietor/s Nadeem Ahmad Mayar (Qasba)was roped in seeking a loan term of Rs. 36.10 crores with arrangement of margin money of Rs. 1.90 crores in lieu ofthe proposed transfer of the lease / property rights of this mortgaged business unit i.e. CA StoreLassipora in his favour.
“Theproprietor (s) of M/S Go Fresh Nadeem Ahmad Mayar obtained the loan amount ofRs. 36.10 Crores, he physically took over the operation of the CA storagebusiness unit without formal transfer of assets / liabilities in his favour,”said the statement. “Ironically, the bank authorities extended the loanfacility to the proposed buyer on the same property which was already underhypothecation with the bank as asset of the principal borrower i.e M/S KehwaSquare Pvt. Ltd.”
Theenquiry, as per the statement, further revealed that M/S Kehwa Square Pvt.Ltd. sought further concessions from the bank subsequent to the first OTS (One TimeSettlement), were sought by it surreptitiously and consented to by the bankauthorities whereof the second instalment of Rs. 55 crores, duly payable after the first OTS was further reducedto Rs. 27 crores.
“Duringenquiry it has come to fore that M/S Kehwa Group in furtherance of a well-knitconspiracy with respective Government agencies and bank authorities under thegarb of NPA and OTS/s in mutual conspiracy illegally benefitted theproprietor/s of M/S Kehwa Group with illegal appropriation of subsidy amount ofRs. 16.50 crores and layering of various transactions.”
“Thus,it is established that the M/S Kehwa Group has got their loan of Rs. 138 croreswith J&K Bank, restructured for an amount of Rs. 78 crores and under a well-knitconspiracy Sheikh Imran and partners of M/S Kehwa Square Pvt. Ltd. was extendedwith covert/ overt support by Officers of J&K Bank and Joint InspectionTeam, dishonestly and fraudulently, who by abuse and misuse of their officialposition as public servants conferred undue pecuniary / monetary advantage onM/S Kehwa Group of Companies thereby causing illegal appropriation of crores ofrupees from State exchequer, for personal motives.”
Theinvestigation has been set into motion and further action as per law is inprocess, read the statement.