Court rejects bail of former Bank chairman, others - Early Times Newspaper Jammu Kashmir

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Court rejects bail of former Bank chairman, others

12/19/2023 12:48:17 AM

Early Times Report

Jammu, Dec 18: The Special Judge CBI Srinagar SC Katal rejected the bail application of Mohammad Shafi Dar former Chairman J&K Co-opretaive Bank and Hilal ahmad Mir Hilal A Mir, the chairman of the River Jhelum Cooperative Housing Building Society in 250 Crore money laundering scam.
As per that report the ECIR mentioned was recorded on 31.03.2021 in the ED Zonal Office Srinagar. The said ECIR stems from the FIR No. 4 of 2020 dated 08.03.2020 regarding which charge sheet has already been filed by ACB Srinagar U/Sec. 120-B, 420,467,471/RPC and section 5(1)(c)(d) r/w 5(2) of J&K PC Act Smt. 2006. These offences fall within ambit of Part-1 paragraph 1 & 8 of schedule offences under prevention of money laundering Act 2002 , therefore, ECIR above mentioned has been recorded for further investigation of the case. The petitioner herein are accused in the charge sheet filed by ACB Srinagar. The ECIR has been filed with a view to identify those who are involved in the offences of money laundring and properties assets etc. out of illegal gains generated by the suspected persons. The allegations against the petitioner No. 1 are that he/petitioner No. 1 the than Chairman of J&K State Corporative Bank (JKSTCB) was acquainted with Hilal Ahmad Mir Chairman of River Jehlim Co¬operative House Building Society since 2004, that society was established in the year 1994 but it was not engaged in any financial/ developed activity and was paper entity only. The petitioner No. 1 Mohammad Shafi Dar in connivance with petitioner No. 2 Hilal Ahmad Mir in the year 2018-19 had granted approval for sanction of loan of Rs. 250 Crores and disbursed to the tune of Rs. 223 Crores in the name of fake society River Jehlim Cooperative House. The society has Siphoned the same amount as payments made towards purchase of land. The lone has been disbursed without taking any collateral security, by over looking all rules & regularity procedures. Several deficiencies were noted in respect of sanctioned loan including that no list of the member of the society was brought on record, borrowing power of society was not ascertained, the loan was granted under cash credit scheme and it was utilized for purchase of the land in contravention of guide lines. In the course of investigation under PMLA it has surfaced that the petitioner No. 1 misused his official position as Chairman of J&K State cooperative Bank (JKSTCB) & deliberately overlook the procedure involved in the fraudulent sanctioning the amount of Rs. 250 Crores and disbursed to the tune of Rs. 223 Crores and Siphon off the same which was nothing but the proceed of the crime. The accused have knowingly generated the proceed of the crime. On the basis of investigation conducted so for the action and attempts of accused Mohammad Shafi Dar cogently established the offence U/S 3 PMLA. It is further mentioned in the report that ED had conducted search operation on 30.11.2023 wherein certain relevant facts, incriminating material and documents were seized. Accused No. 1 Mohammad Shafi has not cooperated with the investigation agency & with-held relevant information which is within his exclusive knowledge who have also refused to make any statement in respect to image of certificate of registration of River Jhelim Co¬operative House Building society found in his Mobile Phone and transmission of the same through whatsapp by him to Abdul Majid Bhat the than Secretary Co-operative department J&K. In short the petitioner No. 1 has not cooperated with the investigation Officer which lead to his arrest on 30.11.2023. Regarding Hilal Ahmad Mir the than Chairman of fake/paper entity i.e River Jhelum Co¬operative house Building Society in connivance with the petitioner No.1 have availed loan of Rs. 250 Crores from JKSTCB in favour of said fake society. During investigation the petitioner No. 2 Hilal Ahmad Mir failed to furnish any details regarding member of the society, contribution from the members Bank accounts, income and expenditure statement etc. The said society had neither developed any housing colony nor carried out any substantial work and it was a paper entity only. Neither the project report nor the financial project was submitted to the cooperative Bank. The accused persons along with some other persons availed the loan of Rs. 250 crores, out of it, amount of Rs. 223 Crores was disbursed in the name of Jhelum Co-operative House Building Society and Siphon off the same as payment towards purchase of the land. The petitioner No. 2 in connivance with the petitioner No.1 have knowingly generated the proceeds of the crime.
Special Judge CBI Srinagar SC Katal after hearing both the sides observed that while granting bail the court has to keep in mind the nature of accusations, the nature of evidence in support thereof, the severity of the punishment which conviction will entail, the character of the accused, circumstances which are pecular to the accused reasonable possibility of securing the presence of the accused at the trial, reasonable apprehension of the witnesses being tampered with the larger interests of the public/State and other similar considerations. Keeping in view the gravity of economic offences and in view of the bar U/Sec. 45 of the PMLA, this court considered that at this stage of investigation it is not appropriate to release the petitioner on bail. Both bail application stands were rejected. (JNF)

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