The Directorate of Enforcement (ED) raided eight locations in Jammu and Kashmir’s Srinagar and arrested two people in a money laundering case, an official statement said on Friday.
The two accused have been identified as Mohammad Shafi Dar (the then Chairman of JKSTCB) and Hilal Ahmad Mir (Chairman of River Jehlum Co-operative House Building Society).
“ED has conducted search and 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), in a PMLA case related to the fraudulent sanctioning of loan to the tune of Rs. 250 Crore in 2019 to a fake cooperative society named River Jehlum Co-operative House Building Society, Shivpora, Srinagar by J-K State Co-operative Bank,” an official statement released by ED said.
ED said that during search operations, various incriminating documents and property documents, including digital devices, have been recovered and seized.
Earlier, ED initiated an investigation based on the FIR and consequent chargesheets filed by LEA, Srinagar, invoking various sections of the Ranbir Penal Code (RPC) and Jammu & Kashmir Prevention of Corruption Act (JK PC Act) Samvat 2006 (Corresponding to IPC and PCA) against 5 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 Rs 250 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 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,” the central agency said.
During search operations, several incriminating documents, and property documents, including digital devices, have been recovered and seized.
Both the arrestees were produced on Friday before the Special PMLA Court, Srinagar, which has ordered the accused to be in ED Custody till December 2, 2023, and directed for further hearing in the matter