Former J&K Co-Operative Bank Chairman Arrested in Rs 250-Crore Money Laundering Case
Srinagar: The Enforcement Directorate (ED) has taken into custody Mr. Mohammad Shafi Dar, the former chairman of Jammu and Kashmir Co-operative Bank, in connection with a money laundering case amounting to Rs 250 crore. The arrest, made in collaboration with officials, includes Mr. Mohammad Hilal A Mir, the chairman of the River Jhelum Cooperative Housing Building Society, identified as a “fictitious firm.”
The apprehended individuals are scheduled to appear before a special court as part of the ongoing investigation. The ED’s search operations, conducted on Thursday, yielded significant evidence, including documents, at Dar’s residence.
The alleged fraudulent activities were orchestrated under the guise of the “fictitious” River Jhelum Cooperative Housing Building Society. The ED’s Srinagar office, exercising powers conferred by the Prevention of Money Laundering Act (PMLA), conducted raids to uncover incriminating evidence.
In August 2020, the Jammu and Kashmir Anti-Corruption Bureau (ACB) filed a charge-sheet against Mir, Dar, and others, citing violations of the Indian Penal Code and the Prevention of Corruption Act.
The ACB investigation revealed that Mir sought financial assistance from the J&K Co-operative Bank, amounting to Rs 300 crore, for acquiring 37.5 acres of land near Srinagar. The subsequent loan sanction of Rs 223 crore lacked adherence to codal formalities, exposing irregularities in the process.
The River Jhelum Cooperative House Building Society, alleged to be fake, had no official registration with the registrar of cooperative societies. Mir, in collusion with Dar and others, fabricated a false registration certificate to facilitate the loan sanction.
The disbursed loan amount, intended for landowners, was not mortgaged to the bank as claimed. The ACB’s investigation successfully traced the siphoned-off Rs 223 crore, with Rs 187 crore frozen to prevent further misuse.
The developments underscore the ED’s commitment to tackling financial malpractices and ensuring accountability in the banking sector.
