In accordance with the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the Directorate of Enforcement (ED) conducted search and survey operations at eight locations in Srinagar, J&K, and arrested two individuals: Hilal Ahmad Mir, the Chairman of the River Jehlum Co-operative House Building Society, and Muhammad Shafi Dar, the then-Chairman of J&K State Co-operative Bank (JKSTCB). This case relates to the fraudulent sanctioning of a loan by J&K State Co-operative Bank (JKSTCB) to a phony cooperative society named River Jehlum Co-operative House Building Society, Shivpora, Srinagar, to the tune of Rs. 250 Crores in 2019.
The Jammu & Kashmir Prevention of Corruption Act (JK PC Act) Samvat 2006 (Corresponding to IPC and PCA) and various sections of the Ranbir Penal Code (RPC) and subsequent chargesheets filed by LEA, Srinagar were the basis for the investigation by the ED against five accused individuals: Mohammad Mujeeb Ur Rehman Ghassi (the then Registrar of Cooperative Societies, J&K), Syed Ashiq Hussain (the then Dy. Registrar of Cooperative Societies, J&K), Hilal Ahmad Mir (the Chairman of River Jehlum Co-operative House Building Society), and Mohammad Shafi Dar (the then Chairman of J&K State Co-operative Bank).
The results of the ED’s investigation showed that the aforementioned individuals had successfully obtained a loan sanction of Rs. 250 crore from J&K State Co-operative Bank under the fictitious name of the River Jhelum Co-operative House Building Society. Without any collateral security, in violation of all regulatory processes, and in furtherance of the criminal conspiracy related to the offense of money laundering under the PMLA, 2002, the same was siphoned off as payments made towards the acquisition of land parcels.
Several damning papers and property records, including digital devices, have been found and confiscated throughout the course of search operations. The Special PMLA Court in Srinagar heard the cases of the two arrestees on Friday. The court ordered the accused to remain in ED custody till 02.12.2023 and recommended further hearings on the subject. Additional research is currently being conducted.
