The High Court has granted bail to ex-Chairman J&K Cooperative Bank Muhammad Shafi Dar who was arrested earlier this year in connection with a case regarding sanctioning of loan of Rs 250 crore in favour of “non-existent Cooperative Society”, River Jhelum Cooperative House Colony.
A bench of Justice Sindhu Sharma granted bail to the former J&K Cooperative Bank chairman after hearing his counsel Tasaduq Khawja and the government through its senior additional advocate general, B A Dar.
Observing that the prosecution has produced the charge-sheet as well as supplementary charge sheet after investigation against the accused, the Court said: “Therefore, his presence in custody may not be necessary for further investigation”.
Pointing out that the prosecution has also stated that much of the amount has been paid to the owners of the land, the court observed. “It is also admitted that the owners have executed Power of Attorney on the basis of which lease has been granted in favour of Secretary of the Society.”
While granting the bail, the court has imposed certain conditions, asking the former State Cooperative Bank Chairman to cooperate with the investigation as and when required and not hamper or tamper with the prosecution witnesses or evidence. The court also asked him to appear before the trial court on each and every date of hearing unless exempted by the Court concerned and that he shall not leave the territorial jurisdiction of Court without prior permission.
The former Banker was granted bail against personal as well as surety bond to the tune of Rs. 50,000 each to the satisfaction of the Registrar Judicial of the Court.
The ACB had registered an FIR (No. 04/2020) on 08 March this year under Sections 465, 467, 468, 471, 120-B RPC and section 5(2) of the Prevention of Corruption Act against Chairman of the Society, Hilal Ahmad Mir as well the ex-Chairman J&K Cooperative Bank, Muhammad Shafi Dar and others for causing a loss of Rs 223 crore to the bank.
The court in its ordered observed that on 8 September 2019 on receipt of the application governing council of the Bank approved grant of loan of Rs 250 Crores in favour of the Society.
Thereafter, the sanction of loan was ratified by the Board of Directors of the on 21 March 2019. After the Board had ratified the decision of the ex-Chairman disbursed the loan of Rs 223 Crores on 25 April 2019, the court observed.