ACB registers FIR in J&K Bank loan fraud case of Rs 1,100 crore

On Saturday, October 19, the Anti-Corruption Bureau (ACB) of Jammu and Kashmir (J&K) police registered a First Information Report (FIR) in the J&K Bank loan fraud case of Rs 1,100 crore advanced to Rice Exports India (REI) Agro Ltd. Many locations in Delhi, Jammu and Srinagar were searched. The ACB accused the officials of J&K Bank branches in Mahim, Mumbai and Ansal Plaza of sanctioning loans up to Rs 800 crore in favour of REI Agro Ltd. This was based on fake documents and violated the standard banking procedure between 2011 and 2013, resulting in the loans becoming Non-Performing Assets. It caused a huge financial loss to the bank. 

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Top officials allegedly involved

According to the authorities, former Chairman of J&K Bank Mushtaq Ahmad Sheikh gave patronage to the officials, who in turn disbursed the loans in question. This was allegedly done in a planned and pre-designed manner to serve the interests of the promoters of REI Agro. Similarly, Sanjay Jhunjhunwala, chairman of REI Agro and Sandeep Jhunjhunwala, vice-president and managing director of that company reportedly misused their position by inflicting a loss of Rs 1,124.45 crore to the J&K Bank. This ultimately caused a loss to the public exchequer.  

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Prima facie commission of offences

During the preliminary enquiry, the ACB discovered that several bank officials such as Mushtaq Ahmad Sheikh, Imtiaz Ahmed Bhat, then Vasant Vihar branch head, Adil Bashir, the branch head at Mahim branch and the alleged conspirators like Sanjay Jhunjhunwala, Sandeep Jhunjhunwala, Danish Beig and Rahul Singhania had prima facie committed offences under Sections 467, 468, 471 and 120-B of Ranbir Penal Code. After the FIR was registered, teams of the ACB carried out extensive searches at the residences of the aforesaid accused persons at 9 locations in the Kashmir Valley, 4 locations in Jammu and three locations in the National Capital Region. Further investigation in the matter is underway. 

(With agency inputs)

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