Anti-Corruption Bureau conducts raids against Jammu and Kashmir bank, files case after unearthing Rs 177-cr fraud

The Anti-Corruption Bureau (ACB) registered a case and conducted raids after unearthing a loan fraud worth over Rs 177 crore in Jammu and Kashmir Bank.

FP Staff June 28, 2019 16:39:14 IST
Anti-Corruption Bureau conducts raids against Jammu and Kashmir bank, files case after unearthing Rs 177-cr fraud

The Anti-Corruption Bureau (ACB) on Thursday registered a case and conducted raids after unearthing a loan fraud worth over Rs 177 crore in Jammu and Kashmir Bank, officials said.

The ACB formally booked the management and officials of the bank along with the illegal beneficiaries involved in the financial irregularities, a spokesman of the ACB said.

AntiCorruption Bureau conducts raids against Jammu and Kashmir bank files case after unearthing Rs 177cr fraud

File image of Jammu and Kashmir Police. AFP

Giving details, he said a joint surprise check (JSC) was conducted by the ACB, Jammu, on account of the allegations of financial irregularities committed by the officers of Jammu and Kashmir Bank, wherein it was revealed that various loan facilities were extended to proprietors of a partnership firm Messrs Paradise Avenue during the period 2012 to 2017 in contravention to the laid down norms of the bank, resulting in the loan accounts turning into non-performing assets.

It was found that the proprietors of the firm approached Jammu and Kashmir Bank, Branch New University Campus Jammu, for availing loan facility of Rs 74.27 crore for setting up a residential township complex under the name 'Paradise Avenue' at Narwal in Jammu consisting of 52 flats in each of the towers named Eden and Zion, he said.

The loan amount was sanctioned on 30 January, 2012, with one of the pre-requisite conditions being that the loan has to be disbursed in a phased manner after securing a margin of Rs 22.09 crore, including an unsecured loan of Rs. 2.00 crore from the borrowers on pro-rata basis.

This paved the way for the firm to purchase 30 kanals of land from different land owners through registered sale deeds in July 2012 after a gap of six months from sanctioning of loan in favour of the firm, meaning thereby that the loanee firm had no title of land in its name when the loan was sanctioned.

The amount of sale consideration reflected in the sale deed was shown paid through cheques to the land owners fraudulently and dishonestly with inflated cost of the land. Those cheques were actually taken back from the land owners and fresh cheques were issued to them from the loan account of Messrs Paradise Avenue and loan account of Shree Simula Solutions, other sister concerns of the leading partner of the firm with objective and purpose to buy the land in question out of the loan amount alone sanctioned by the bank.

With inputs from PTI

Updated Date:

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