FIR against Dy Mayor, Govt, Bank officials; arrests soon
SRINAGAR, June 15: In a major fraud committed by the Srinagar’s Deputy Mayor Sheikh Imran with active connivance of Jammu and Kashmir Bank and Government officials, he has declared one of his mortgaged business units as Non-Performing Account (NPA) without paying any installment to the bank and sold it to M/s Go Fresh without transferring the papers and bank has provided loan to the purchaser against mortgaged unit.
The Anti Corruption Bureau has registered a case (FIR No. 3/2019 under section 5(1) (d) P.C Act Samvat 2006, punishable u/S 5(2) of the Act r/w 420 & 120-B RPC)in Police Station Anti Corruption Bureau, South Kashmir (Anantnag) against Shiekh Imran Director M/S Kehwa Square Pvt Ltd Bohri Kadal Srinagar, officers of J&K Bank and other Govt officials, for illegal appropriation of subsidy with inflated project cost for establishment of CA storage at Lassipora, Pulwama.
The ACB has found that proprietor (s) of M/s Go Fresh Nadeem Ahmad who purchased the mortgaged business CA store of M/s Kehwa Square Pvt Ltd obtained the loan amount of Rs 36.10 crores from the Bank illegally. He physically took over the operation of the CA storage business unit from Sheikh Imran without formal transfer of assets and liabilities in his favour. Sources said that M/s Go Fresh was already NPA with the Bank.
The bank authorities extended the loan facility of Rs 36.10 crores to M/s Go Fresh on the same property which was already under hypothecation with the bank as asset of the principal borrower i.e M/s Kehwa Square Pvt Ltd.
The ACB enquiry revealed that criminal design of selling of mortgaged property by Sheikh Imran and his partners was executed with the active support of the officials of J&K Bank through business unit M/s Go Fresh. The bank gave a loan of Rs. 36.10 crores with arrangement of margin money of Rs 1.90 crores in lieu of the mortgaged business unit, CA Store Lassipora, to M/s Go Fresh.
The enquiry revealed that cost of CA Storage unit was found to have been inflated to Rs 47 crore instead of the actual cost of Rs 17 crore, for claiming more subsidy from the government by raising inflated and bogus bills. The Horticulture officers and bank officials were found involved in the fraud by which cost of the unit was shown inflated for getting government subsidy.
The enquiry further pointed out that in order to usurp the subsidy component the proprietor of M/s Kehwa Square Pvt Ltd Sheikh Imran and his partners declared the CA Store as NPA without paying even a single installment towards the bank.
ACB has found that M/s Kehwa Group has six more business units and its owner Sheikh Imran has raised varied loan facilities and overdrafts for these business units. The liabilities on account of loan accumulated to Rs 138 crores and Kehwa Square and its sister concerns had turned NPA and Sheikh Imran sought one time settlement with J&K Bank authorities.
The bank granted wave off liabilities of Rs.33 crores to Sheikh Imran and was asked to deposit Rs 105 crores in two installments with the first installment of Rs 50 crores to be paid by 25.03.2017 as one time settlement.
The ACB has found that M/s Kehwa Square Pvt. Ltd. was given further concession of Rs 28 crore to second installment of one Time Settlement (OTS) of Rs 55 crores.
It has been established that the M/s Kehwa Group has got their loan of Rs 138 crores with J&K Bank, restructured for merely an amount of Rs 78 crores under a well knit conspiracy by Sheikh Imran and partners of M/s Kehwa Square Pvt. Ltd. with covert and overt support by officers of J&K Bank and Joint Inspection Team.
The ACB is further investigating the matter and arrests in the case are likely to be made soon.