ACB registers case against former J&K Bank chairman

Anti Corruption Bureau (ACB) on Monday said that it has registered a case against the former J&K Bank chairman Parvez Ahmed Nengroo for ‘criminal misconduct’ under J&K Prevention of Corruption Act 2006.

A case FIR No 14/2019 stands registered in Police Station of ACB Srinagar into the matter and investigation is going on, a statement issued by the ACB said.

“… omissions and commissions on the part of Parvez Ahmed Nengroo, the then chairman J&K Bank Ltd in furtherance of conspiracy hatched with officer/officials of IFFCO Tokio General Insurance Company while executing an insurance deal with the said company in order to secure appointment of his  close relative Asif Manzoor Beigh in the said company and others at the cost of J&K Bank resources constitute criminal misconduct under J&K PC Act 2006  and thus disclose commission of offences punishable under section 5(1) (d) read with 5(2) J&K Prevention of Corruption Act and section 120B of the RPC,” read the statement.

ACB said it has received information that a insurance deal “in violation of norms” has been made by J&K  Bank with one company namely, IFFCO Tokio in which close relative of former chairman J&K Bank Parvez Ahmed Nengroo is employed resulting into undue benefits to the said company.

“The verification conducted into the matter revealed that due to the said insurance deal, the said beneficiary company (IFFCO Tokio) has been conferred business of insurance in Srinagar and Anantnag at the cost of bank resources and that of Bajaj Allianz Company) which was already in arrangement with J&K Bank since 2002,” read the statement.

It said in the first quarter of financial year 2018-2019, J&K Bank received commission from Bajaj Allianz to the tune of Rs 1.59 crore, whereas commission received from IFFCO Tokio for the first quarter of current financial year is to the tune of Rs 88 lakh, which is less by Rs 71 lakh, “thereby a loss in the form of commission to J&K Bank has been caused”.

“By resorting to the acts of favouritism and abuse of official position as chairman J&K Bank in connivance with MD IFFCO Tokio, his relative Asif Manzoor Beig was appointed in the said insurance company (as chief manager, Srinagar office) against annual salary package of Rs 19,28,886 (Rs19.29 lakh) which is approximately 2.5 times higher than that of the package given by Bajaj Allianz where the accused beneficiary was functioning as deputy manager earlier,” the ACB said.

ACB on Monday conducted the search of the office premises of IFFCO Tokio located at Chinar Complex Residency Road here to “seize incriminatory evidence related to the commission of the offence by the officers/officials of the IFFCO Tokio”.