The Enforcement Directorate (ED) on Friday arrested two persons under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in a case related to the “fraudulent sanctioning of loan by the J&K State Co-operative Bank (JKSTCB) to the tune of ₹250 crores in 2019”.
An ED spokesman said the agency’s teams conducted search and survey operations at eight locations in Srinagar and arrested Mohammad Shafi Dar, the then Chairman of JKSTCB, and Hilal Ahmad Mir, Chairman of the River Jehlum Co-operative House Building Society.
The spokesman said both were arrested under the provisions of the PMLA in a case of “fraudulent sanctioning of loan by the JKSTCB to the tune of ₹250 crores in 2019 to a fake cooperative society, River Jehlum Co-operative House Building Society, Shivpora, Srinagar”.
“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 December 02, 2023 and directed for further hearing in the matter,” the ED said.
The spokesman said the ED investigation revealed that the persons had managed to fraudulently get the sanction of the loan and the same was siphoned off as payments made towards the 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.
