Another banking fraud unearthed in Jammu and Kashmir

Jammu and Kashmir police has blown a lid off a major syndicate to siphon off money from the banks using fake documents of the collateral for securing huge loans.

The conspiracy was unearthed when police arrested Sarfaraz Ahmad Hakeem of Soura, Srinagar. 

"During the course of investigation it came to surface that the accused had availed a loan of RS 38 lakh  from Jammu and Kashmir Bank Ltd, Branch Ganpatyar for the unit of photo editing under the brand name Edit World against the mortgage of three kanal 12 marlas (eight kanals form one acre) land and hypothecation of machinery purportedly to be acquired for the unit", said a Jammu and Kashmir police spokesperson.

Police said after paying installments for some time the accused turned defaulter. "The concerned bank authorities could not take possession of the land and hypothecated items as the revenue documents were found to be fake and the machinery to be hypothecated did not exist at all", he said

Police said the accused was granted anticipatory bail by the court which was challenged by Station House Officer of Police Station Kralkhud. 

"After strenuous efforts and strong arguments made before the Hon’ble Court, no extension in the order was granted. Subsequently, the accused went into hiding who was nabbed after strenuous efforts" said the spokesman.

Police said the case appears to be just a tip of the iceberg of a larger syndicate operating to siphon off public money. 

"The case seems to be part of a larger syndicate which after producing fake documents before the banks take a large amount of loan thereby fraudulently siphoning off the public money", said the police spokesperson.