Decided on October 19,2020

Hilal Ahmad Mir Appellant
Anti-Corruption Bureau Respondents


Sanjay Dhar,J. - (1.)As per the FIR (FIR No.04/2020 of P/S Anti-corruption Bureau, Srinagar), accused Mohammad Shafi Dar, the then Chairman, J &K State Cooperative Bank Limited, fraudulently sanctioned loan of Rs.250.00 crores in favour of a non-existent Cooperative Society, namely, River Jhelum Cooperative House Building Society Ltd. The loan was sanctioned to the aforesaid Cooperative Society for the purpose of construction of a Satellite Township at Shivpora, Srinagar. An amount of Rs.223 crores out of sanctioned loan was released in favour of the Chairman of the Cooperative Society and on 01.05.2019, the said amount was credited to the account of the Chairman of the Cooperative Society, who happens to be the petitioner herein. Prior to sanction of the loan, on 10.01.2018, the petitioner had approached the Jammu and Kashmir Cooperative Department for grant of financial assistance to the tune of Rs.300 crores for the purpose of construction of Satellite Township on 300 kanals of proprietary land located in the outskirts of Srinagar City. The application of the petitioner was endorsed by the then Secretary to the Government, Co-operative Department to the Registrar Co-operative Societies, J &K, for taking up the matter with the concerned bank. Thereafter the application along with the recommendation, in terms of letter dated 26.03.2019, was forwarded by Registrar, Co-operative Societies, J &K, to the Managing Director, J &K State Co-operative Bank Ltd. (JKSCBL) enclosing therewith a photocopy of the certificate of registration of River Jhelum House Building Co-operative Society Ltd. The JKSCBL sanctioned a loan in the amount of Rs.250 crores without obtaining field report, balance sheet, profit and loss statement, PAN Number, income tax returns, constitution of the Society including its byelaws and Board resolution etc. and also without securing the loan amount by way of taking sufficient collateral security. Thus, as per the FIR, the Chairman of JKSCBL in conspiracy with the petitioner herein, sanctioned and released the loan amount by flouting all the rules and regulations of the Bank including the one whereby the Bank could sanction cash credit to an individual in one go only up to the limit of rupees one crore. The FIR disclosed commission of offences under Section 5(1)(d) r/w Section 5(2) of Jammu & Kashmir Prevention of Corruption Act Svt. 2006 and offences under Section 465, 467, 468, 471 r/w 120-B RPC.
(2.)After conducting investigation of the case, the Investigating Agency has come to the conclusion that the accused Mohammad Shafi Dar, the then Chairman of JKSCBL, in conspiracy with accused Hilal Ahmad Mir (petitioner herein), the Chairman of non-existent River Jhelum Co-operative House Building Society, and accused Abdul Hameed Hajam, the Secretary of the aforesaid non-existent Society, entered into a conspiracy with each other and along with other persons, defrauded the Jammu and Kashmir Co-operative Bank Ltd. on the basis of false and forged documents and succeeded in causing loss to the tune of Rs.223 crores plus interest to the Government exchequer and to the Jammu and Kashmir Co-operative Bank, as the said Bank has sanctioned and released the aforesaid amount of loan by violating the banking rules and regulations. It is further stated in the charge sheet that investigation regarding roles of Mohammad Mujib-ur-Rehman Gassi, the then Registrar, Co-operative Societies, Ashiq Hussain, the then Deputy Registrar of Co-operative Societies and others is still in progress and report in terms of Section 173(8) of Cr. P. C would be submitted before the Court upon completion of further investigation of the case.
(3.)It appears from the record of the case that first bail application of the petitioner was rejected by the learned trial court (Special Judge, Anti-corruption, Kashmir, Srinagar) vide its order dated 05.06.2020 and his second bail application came to be rejected by the same Court in terms of order dated 18.07.2020. Feeling aggrieved of the aforesaid orders of the learned trial court, the petitioner has filed the instant application before this Court for grant of bail in his favour.

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