J&K Bank loan case: Ex-Chairman Mushtaq Ahmad Shaikh, 18 Others Booked

But this was brazenly violated by the company in connivance by the bank authorities who allowed disbursement of loan through joint liabilities groups (JLGs), though the company had already received paddy and was not entitled to disburse the loan under such circumstances.

“As per probe conducted during PE, the JLG’s were in fact non-existing entities whose credentials and antecedents had never been verified by the bank. The objective was to facilitate the company to divert the loan amount for its own benefit, the FIR said.

“The bank also violated NABARD guidelines in which members of JLG’s (which is a group of farmers) should be from the same area/village but this aspect was deliberately and with malafide intentions ignored by the bank’s officers,” the FIR alleged.

The preliminary enquiry findings of the anti-corruption bureau state that It was surprising that there was no tangible security taken by the bank in these cases. “These loans and advances were sanctioned and disbursed by the officials of the J&K Bank branch in Mahim, Mumbai, and Vasant Vihar, New Delhi, in connivance with and under patronage of then chairman, J&K Bank, Mushtaq Ahmad Sheikh under single conspiracy spread over several years…,” the FIR said.

The FIR said it was done in a planned and pre-designed manner by misuse and abuse of their authority as public servants of the bank, just to serve the interest of the promoters of the company — Sanjay Jhunjhunwala and Sandeep Jhunjhunwala. (PTI)