SRINAGAR, DEC 01 : In a major development, the Directorate of Enforcement (ED) has conducted search and survey operations at eight locations in Srinagar, Jammu & Kashmir.
The crackdown has led to the arrest of two individuals, namely Mohammad Shafi Dar, the former Chairman of JKSTCB (J&K State Co-operative Bank), and Hilal Ahmad Mir, Chairman of River Jehlum Co-operative House Building Society. Both arrests were made under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The arrests are part of an ongoing investigation into a case related to the fraudulent sanctioning of a loan amounting to Rs 250 Crores in 2019. The loan was granted by JKSTCB to a fake cooperative society named River Jehlum Co-operative House Building Society, located in Shivpora, Srinagar.
ED’s probe was initiated based on an FIR and subsequent chargesheets filed by LEA (Law Enforcement Agency), Srinagar. These legal actions invoked various sections of the Ranbir Penal Code (RPC) and the Jammu & Kashmir Prevention of Corruption Act (JK PC Act) Samvat 2006, corresponding to the IPC and PCA.
The investigation uncovered a complex web of fraudulent activities orchestrated by key figures, including Hilal Ahmad Mir, Abdul Hamid Hajam (Secretary of River Jehlum Co-operative House Building Society), Mohammad Mujeeb Ur Rehman Ghassi (the then Registrar of Cooperative Societies, J&K), Syed Ashiq Hussain (the then Dy. Registrar of Co-operative Societies, J&K), and Mohammad Shafi Dar (the then Chairman of JKSTCB).
It was revealed that the accused individuals managed to fraudulently secure the sanction of a Rs 250 Crore loan from JKSTCB in the name of the non-existent River Jehlum Co-operative House Building Society. The funds were subsequently siphoned off as payments supposedly made for the purchase of land parcels, circumventing collateral security and regulatory procedures. This act constituted a criminal conspiracy related to the offense of money laundering under the PMLA, 2002.
The search operations yielded several incriminating documents, property records, and digital devices, all of which have been seized by the ED. The arrested individuals, Mohammad Shafi Dar and Hilal Ahmad Mir, were produced before the Special PMLA Court in Srinagar. The court has ordered them to be in ED custody until December 2, 2023, with further hearings scheduled.
