Searches conducted at 16 places
Excelsior Correspondent
Jammu, Oct 19: The Anti Corruption Bureau (ACB) has registered Preliminary Enquiry (PE) into allegations that the officers/officials of J&K Bank Branch Mahim Mumbai and Ansal Plaza, New Delhi have sanctioned loan to the tune of Rs 800 crore in favor of firm namely M/s REI Agro Ltd, on fake documents and in violation of the laid down banking procedure during the year 2011 to 2013 which resulted in the accounts becoming NPA in the year 2014 thereby causing a huge financial loss to the bank.
It emerged during the PE that the Firm REI Agro, which has shown its head office at Kolkata and Corporate office at New Delhi, approached Mahim Mumbai Branch of JK Bank without having any office at Mumbai and got the loans/advances sanctioned in their favour worth Rs 550 crores. The Vasant Vihar Branch of J&K Bank also sanctioned Rs 139 crores in their favour against Supplier Bill Discounting Facility and takeovers.
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The company approached the J&K Bank branch Mahim Mumbai and Vasant Vihar Delhi for sanctioning of advances for making payment to the farmers as per terms and conditions laid down in loan sanction order of J&K Bank.The farmers were supposed to provide paddy to the company. In turn, the company had to sell the produce (paddy) and the remittancet hereof had to be deposited in the bank as installments against advances received by the company, an official handout said.
Despite the fact that it was known to the bank authorities and the company that the loan amount had to be disbursed among farmers for production of paddy which was brazenly violated by the company in connivance by the bank authority, which allowed disbursement of loan through Joint Liability Groups (JLG’s) though the company had already received the paddy and were not entitled to disburse the loan under such circumstance.
As per probe conducted during PE, the JLG’s were in fact non existing entity whose credentials and antecedents had never been verified by the bank. The objective was to facilitate the company to divert the loan amount for its own benefit. The bank also violated NABARD guidelines where members of JLG’s (which is a group of farmers) should be from the same area/village, but this aspect was deliberately and with malafide intentions ignored by the bank officers. The crop loan in fact had been recommended against the securities of hypothecation of receivables of farmers/JLGs for supply of paddy to M/S REI Agro and corporate guarantee of the company along with post dated cheques which cannot be construed as a tangible security.
Further the bank officers/officials also failed to take cognizance of the disbursement requests of the company wherein the company itself mentioned that it had already received the produce from the farmers/JLGs thus making the loan unwarranted. On scrutiny of bank records, there was nothing on record as to who drafted the loan documents and even there is no vetting certificate of concerned Law department.
As per records of the bank, the Vasant Vihar Branch had in fact taken over loan obtained by the company from IDFC & IREDA . This loan was taken over for the wind mill already established by the company. This account too turned NPA along with other accounts. The machines were sold by the Bank and Rs 54 crores were recovered from the company but there was still outstanding of Rs 85 crores.
These loans/advances were sanctioned/ disbursed by the officers/ officials of JK Bank Branch Mahim, Mumbai and Vasant Vihar, New Delhi in connivance with and under patronage of then Chairman J&k Bank Mushtaq Ahmad Sheikh under single conspiracy spread over several years, in a planned and pre designed manner by misuse and abuse of their authority as public servants of the bank, just to serve the interest of the promoters of company M/s REI Agro Ltd. namely Sanjay Jhunjhunwala, Chairman of Company M/s REI Agro Ltd. Sandeep Jhunjhunwala Vice President and Managing Director of the Company who have by misuse and abuse of their authorities as public servants of the bank conferred huge monetary benefit upon the company dishonestly and fraudulently, which resultantly inflicted huge loss of Rs. 635 crores plus Rs. 489.45 crores (Interest component), totaling Rs. 1124.45 crores to the J&K Bank which ultimately is loss to the State exchequer.
The omissions and commissions which have surfaced during PE clearly disclosed commission of offences under section 5 (1) (d) r/w 5 (2) J&K PC Act Svt. 2006 & Sec. 467, 468, 471 & 120-B RPC on the part of the bank officers/officials namely Mushtaq Ahmad Sheikh, then Chairman J&K Bank, Imtiaz Ahmed Bhat then Branch Head Vasant Vihar, DalipBhan Credit Officer, Branch Vasant Vihar, Ashok Kumar Credit Officer, Branch Vasant Vihar, Harsh Kumar Manager Advances, Branch Vasant Vihar, Rakesh Kaw Manager Advances, Branch Vasant Vihar, Adil Bashir then Branch Head Mahim Mumbai, S.S.Sambyal, Credit officer, Branch Mahim, Mohd. Yousaf then Branch Head Mahim, Abdul Hamid Thokar Credit officer, Branch Mahim, Basir Ahmad then Branch Head Mahim, Nisar Ahmed Shah Credit officer, Branch Mahim, Shafiq Ahmed Credit officer, at A&AP (Advances & Asset Planning) Corporate Headquarters, J&K Bank, Srinagar, A.K.Kou lRetd. Vice President Branch Head Vasant Vihar and the beneficiaries (as conspirators) namely Sanjay Jhunjhunwala, Chairman of Company M/s REI Agro Ltd. Sandeep Jhunjhunwala, Vice President and Managing Director of the Company, Danish Beig, Vice President Corporate Finance REI Agro, Rahul Singhania, Manager Corporate Finance M/s REI Agro, JLGs and others.
Soon after the registration of FIR, ACB teams carried out extensive searches at the houses of aforesaid accused J&K Bank officials at nine locations in Kashmir valley, four locations in Jammu and three locations in National Capital Region of Delhi including the houses of Sanjay Jhunjhunwala and Sandeep Jhunjhunwala.
Further investigation in the matter is on and three teams are continuing the investigation/searches in National Capital Region, Delhi.
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