NEW DELHI/SRINAGAR, Jul 30 (Agencies): The Enforcement Directorate on Tuesday said it seized documents and digital devices after it searched multiple premises in Jammu and Kashmir as part of an alleged bank funds fraud case against a former branch manager of Jammu and Kashmir Grameen Bank and some other persons.
The raids against the former banker — Istiyaq Ahmad Parray — and others were launched on Monday and five premises in Srinagar and Pattan were covered.
The money laundering case stems from charge sheets filed by the CBI against Parray, who in “in connivance” with other accused private persons, like bank correspondent Mohd Maqbool Ganie, Manzoor Ahmad Dar, Mushtaq Hussain Wani, Shabir Ahmad Dar, Shabir Ahmad Bhat, Nissar Ahmad Dar and others “fraudulently” sanctioned the Kisan Cash Credit loans (KCC), car loans, joint liability groups (JLGs), and cash credit limits (CC) to fake or non-existing customers, the agency alleged.
There were a total of 250 “fake” loan accounts, which later turned out to be non-performing assets (NPA). This led to “embezzlement” of Rs 8.36 crore bank funds, the central agency said in a statement.
The loans were sanctioned between 2014 and 2018.
The majority of the funds received as loans were transferred to either the accused or the relatives of the accused from where proceeds were withdrawn mostly in cash, the ED said.
The loans were mostly sanctioned on the basis of forged or fake documents and the persons in whose name the loans were sanctioned did not exist, the agency claimed.
All the loan accounts (total 250) were sanctioned “without” following the due procedure and by “violating” the norms and conditions of the loans, the ED said.
The agency said “incriminating” documents including books of account and digital devices were seized during the searches.