ACB books J&K Bank for Rs 177 cr worth loan fraud

The Jammu and Kashmir's (J&K) Anti Corruption Bureau booked J&K Bank, its officials and the management on Friday for financial irregularities and loan fraud worth Rs 177.68 crore. The agency also carried out searches on various premises of the bank.

On allegations of financial irregularities, a joint surprise check carried out found that various loan facilities were extended to proprietors of a partnership firm Paradise Avenue during 2012 to 2017 against laid down norms and then loan accounts turned into non-performing assets.

"It was also found that the proprietors of the firm approached the Bank at Branch New University Campus in Jammu for availing of loan of Rs 74.27 crore for setting up a residential township under the name of 'Paradise Avenue' at Narwal, Jammu consisting of 52 flats in each of the towers named Eden and Zion," the ACB said.

The loan amount was sanctioned on January 30, 2012 with one of the pre-requisite conditions that loan has to be disbursed in a phased manner after securing margin of Rs 22.09 crore, including unsecured loan of Rs 2 crore from the borrowers on a pro-rata basis.

On scrutiny of records, it has surfaced that loan was sanctioned in January 2012 which paved way for the firm to purchase 30 kanals of land from different landowners through registered sale deeds in July 2012 after a gap of six months from sanctioning of loan in favour of the firm.

It clearly means that the firm had no title of land in its name when the loan was sanctioned in Jan 2012 which had to be mortgaged to the bank.

"Under a well-knit conspiracy hatched by the firm with the bank officials, the amount of sale reflected in the sale deed was shown paid through cheques to the landowners fraudulently and dishonestly with inflated cost of the land," the ACB stated.