During the course of search operations, several incriminating documents, property documents, including digital devices, have been recovered and seized
Fintech Biznews Service
Mumbai, December 1, 2023: Directorate of Enforcement (ED) has conducted
search/survey operations at 8 locations in Srinagar, J&K and has arrested two
persons namely Mohammad Shafi Dar (the then Chairman of JKSTCB) and Hilal
Ahmad Mir (Chairman of River Jehlum Co-operative House Building Society), under
the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in a case
related to the fraudulent sanctioning of loan by J&K State Co-operative Bank
(JKSTCB) to the tune of Rs250 Crores in 2019 to a fake cooperative society named
River Jehlum Co-operative House Building Society, Shivpora, Srinagar, according to
a Press Release issued by Directorate of Enforcement (ED) on 1/12/2023.
ED initiated investigation on the basis of FIR and consequent chargesheets filed by
LEA, Srinagar invoking various sections of Ranbir Penal Code (RPC) & Jammu &
Kashmir Prevention of Corruption Act (JK PC Act) Samvat 2006 (Corresponding to
IPC and PCA) against 05 accused persons viz. Hilal Ahmad Mir (Chairman of River
Jehlum Co-operative House Building Society), 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). ED investigation revealed that the aforementioned
persons had managed to fraudulently get the sanction of a loan of Rs250 Crore from
JKSTCB in the name of a fake society, River Jhelum Co-operative House Building
Society. The same was siphoned off as payments made towards purchase of land
parcels, without any collateral security and overlooking all regulatory procedures,
and in pursuance of the criminal conspiracy relating to offence of money laundering
under PMLA, 2002. During the course of search operations, several incriminating
documents, property documents, including digital devices, have been recovered and
seized. Both the arrestees were produced on Friday before the Special PMLA Court,
Srinagar, who has ordered the accused to be in ED Custody till 02.12.2023 and
directed for further hearing in the matter. Further investigation is under progress.
