Rs 223 cr loan scam: ACB produces supplementary chargesheet

The Anti Corruption Bureau (ACB) Tuesday produced a supplementary charge sheet in the Rs 223 crore loan scam of the J&K State Cooperative Bank.

The chargesheet was presented against Muhammad Mujib-ur-Rehman-Ghassi son of Ghulam Muhammad Ghassi of Syedpora, Harwan, the then Registrar of Cooperative Societies J&K and Ashiq Hussain Syed Zia-ud-Din of Chewdara Berwah, Budgam, the then Deputy Registrar of Cooperative Societies J&K in the Rs 223 crore J&K State Cooperative Bank loan scam.

FIR No 04/2020 had already been registered against the then Chairman J&K State Cooperative Bank Ltd, Muhammad Shafi Dar of Majeed Bagh Barzulla Srinagar, and others under section 5(1) (d) r/w Section 5(2) PC Act and sections 465, 467, 468, 471, 120-B/RPC in ACB Srinagar.

They were accused of sanctioning loan to the tune of Rs 250 crore in favour of a non-existent society ‘River Jhelum Cooperative House Building Society’ of Magarmal Bagh, Srinagar for construction of a satellite township at Shivpora, Srinagar on the basis of fabricated documents and while bypassing the credit policy of the bank.

ACB had already filed a chargesheet on November 8, 2020 against Dar, Chairman of the non-existent society Hilal Ahmad Mir and Secretary of the fake society, Abdul Hamid Hajam.

The investigation revealed that Mujib-ur-Rehman Ghassi, the then Registrar Cooperative Societies and Ashiq Hussain, the Deputy Registrar of the office of Registrar Cooperative Societies had issued a letter to J&K State Cooperative Bank under the signature of the registrar despite being well aware that such a society did not exist.

On the receipt of the letter, a loan to the tune of Rs 223 crore was sanctioned in favour of the non-existent cooperative society by J&K State Cooperative Bank headed by Dar.

The investigation has established that the agenda items of non-existent society were also created on January 23, 2019 before the sanction and disbursement of loan to the tune of Rs 223 crore.

The bye laws of the non-existent society were created on November 21, 2019 fictitiously by Dar.

The next date of hearing in court is November 23, 2020.