The Anti-Corruption Bureau has registered a case against the city’s Deputy Mayor Sheikh Imran and officials of the Jammu and Kashmir Bank for purported illegal appropriation of crores of rupees from the state exchequer.
Sheikh Imran, the businessman-turned-politician, is theDeputy Mayor of Srinagar Municipal Corporation (SMC).
A spokesman of ACB in a statement on Saturday said a caseFIR 3/2019 has been registered in Police Station ACB, South Kashmir (Anantnag)against Shiekh Imran, Director M/S Kehwa Square Pvt Ltd BohriKadal Srinagar,officers of J&K Bank and other government officials, “for illegalappropriation of subsidy with inflated project cost for establishment of CAstorage at Lassipora, Pulwama.”
The case has been registered under section 5(1) (d) P.C ActSamvat 2006, punishable u/S 5(2) of the Act read with 420 and 120-B RPC.
Giving details, the spokesman said: “During enquiry, it alsocame to light that M/S Kehwa Group has six more business units. Sheikh Imranhas raised varied loan facilities/overdrafts for these business units. Theliabilities on account of loan accumulated to Rs 138 crore.”
The ACB spokesman said that since one of the companies’Kehwa Square’ including its sister business concerns had turned NPA, SheikhImran had sought one time settlement with the J&K Bank authorities. Thebank finally granted a waiver of Rs 33 crore.
“Pursuant to the one time settlement, M/S Kehwa Group wasasked to deposit Rs 105 crore in two instalments with the first instalment ofRs 50 crore to be paid by 25.03.2017,” it said.
The enquiry, according to the ACB, further revealed that inorder to “usurp” the subsidy component under the garb of promoting horticultureactivity/storage facility, the proprietor of M/S Kehwa Square Pvt Ltd, SheikhImran and his partners with the connivance of horticulture officers and bankofficials got the CA Store declared as NPA without paying even a single instalmenttowards the bank.
“The cost of the project assessed subsequently duringenquiry by ACB was found much lower than the projected cost,” it said.
“The enquiry revealed that this criminal design of SheikhImran and his partners was actually executed with the active support of theofficials of J&K Bank through business unit namely M/S Go Fresh in seekinga loan term of Rs. 36.10 crore with arrangement of margin money of Rs. 1.90crore in lieu of the proposed transfer of the lease/property rights of this mortgagedbusiness unit i.e. CA Store Lassipora in his favour,” the statement said.
“The proprietor(s) of M/S Go Fresh Shri Nadeem Ahmad Mayarobtained the loan amount of Rs. 36.10 crore; he physically took over theoperation of the CA storage business unit without formal transfer ofassets/liabilities in his favour.
“Ironically, the bank authorities extended the loan facilityto 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,” the statement said.
According to the statement, the enquiry further revealedthat “M/S Kehwa Square Pvt Ltd sought further concessions from the banksubsequent to the first OTS (One Time Settlement) sought by it surreptitiouslyand consented to by the bank authorities whereof the second instalment of Rs.55 crore, duly payable after the first OTS was further reduced to Rs. 27crore”.
During the enquiry it has come to fore that M/S Kehwa Group”in furtherance of a well knit conspiracy with respective government agenciesand bank authorities under the garb of NPA and OTS/s in mutual conspiracyillegally benefitted the proprietor/s of M/S Kehwa Group with illegalappropriation of subsidy amount of Rs. 16.50 crore and layering of varioustransactions (sic).”
The ACB spokesman said, “It is thus established that M/SKehwa Group has got their loan of Rs. 138 crore with J&K Bank, restructuredfor merely an amount of Rs 78 crore and under a well knit conspiracy SheikhImran and partners of M/S Kehwa Square Pvt. Ltd. was extended withcovert/overt support by officers ofJ&K Bank and Joint Inspection Team, dishonestly and fraudulently, who byabuse and misuse of their official position as public servants conferred unduepecuniary/monetary advantage on M/S Kehwa Group of Companies thereby causingillegal appropriation of crores of rupees from state exchequer, for personal motives (sic).”
The investigation has been set into motion and furtheraction as per law is in process, the spokesman said.