J&K bank case: ACB files FIR against Srinagar Dy Mayor

16/06/2019

Srinagar, Jun 15: The Anti-Corruption Bureau has registered a case against the city's Deputy Mayor Sheikh Imran and officials of the Jammu and Kashmir Bank for alleged illegal appropriation of crores of rupees from the state exchequer, a spokesman said Saturday.
Imran, the businessman-turned-politician, is the Deputy Mayor of Srinagar Municipal Corporation (SMC).
During investigation, it was revealed that Imran, who is director of the Kehwa Group of Companies, submitted a proposal to the J&K Bank for establishment of controlled atmosphere (CA) storage under the name of Kehwa Square Pvt. Ltd. in Pulwama, the spokesman said.
A joint inspection team of various experts and government officials conducted an inspection of the site and the assessed cost of the project to Rs 33.00 crore, he said.
The subsidy component was calculated at Rs 16.50 crore 50 per cent of the estimated project cost (EPC) purportedly as per norms of Horticulture Mission for North East & Himalayan (HMNEH) states, he said.
The proposal was approved by the empowered monitoring committee of Mission for Integrated Development of Horticulture (MIDH).
After its approval, the state government also constituted a committee which conducted an inspection and then recommended release of subsidy as per norms without altering or amending the component wise value of machinery and civil works, etc., the spokesman said.
During inquiry, it also came to light that the Kehwa Group has six more business units and Imran has raised varied loan facilities /overdrafts for these units, he said.
"The liabilities on account of loan accumulated to Rs 138 crore. Since, one of the company Kehwa Square had turned non-performing asset, Imran sought one-time settlement with J&K Bank authorities," the spokesman said.
To usurp the subsidy component under the garb of promoting horticulture activity/storage facility with the connivance of Horticulture officials and bank officials, Imran and his partners wanted the CA storage to be declared as a non-performing asset without paying even a single installment to the bank, the spokesman said.
The cost of the project assessed during the inquiry by the ACB was found much lower than the projected cost, he added. According to the ACB, the plan was executed with the support of officials of the J&K Bank.
The spokesman said Nadeem Ahmad Mayar, the proprietor of Go Fresh, took a loan of Rs 36.10 crore and took over operations of the CA storage business unit without formal transfer of assets/liabilities in his name.
"Ironically, the bank authorities extended the loan facility to the proposed buyer on the same property which was already under hypothecation with the bank as asset of the principal borrower i.e Kehwa Square Pvt. Ltd," he said.
The Kehwa Group, with the support of government agencies and bank authorities, illegally benefitted with appropriation of subsidy amount of Rs 16.50 crore and layering of various transactions, he said.
According to the ACB, the Kehwa Group took a loan of Rs 138 crore from the J&K Bank and got it restructured to Rs 78 crore with the help of bank officials.
Case FIR No. 3/2019 u under section 5(1) (d) P.C Act Samvat 2006, punishable u/S 5(2) of the Act r/w 420 & 120-B RPC has been registered 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.
During verification conducted by Anti Corruption Bureau kashmir, it came to light that one Sheikh Imran, Director Kehwa Group of Companies has submitted a proposal/ DPR to J&K Bank for establishment of CA storage under the name and style of M/S Kehwa Square Pvt. Ltd. at Lassipora, Pulwama. As per the norms of Mission for Integrated Development of Horticulture (MIDH), a Joint Inspection Team (JIT) of various experts and government officials in association with Shiekh Imran Director M/S Kehwa Square Pvt. Ltd. conducted spot inspection of the site .The assessed cost of the project to Rs. 33.00 crores with the subsidy component thereof calculated to Rs. 16.50 crores i.e. 50% of estimated project cost (EPC), purportedly as per the norms of Horticulture Mission for North East & Himalayan (HMNEH) States was sent to empowered monitoring committee of MIDH, Govt. of India, for final approval. Subsequent to its approval, the State Government also constituted a Committee which did spot inspection and physical verification and recommended release of subsidy as per norms without altering or amending the component wise value of machinery and civil works, etc. As per norms, the subsidy component, after its release by the National Horticulture Board (NHB), the same was required to be kept in a separate account by the credit provider Bank termed as subsidy reserve fund with detailed terms and conditions for adjustment of the subsidy.
During enquiry, it also came to light that M/S Kehwa Group has 06 more business units. Sheikh Imran hasraised varied loan facilities/ ODs (overdrafts) for these business units. The liabilities on account of loan accumulated to Rs. 138 crores. Since, one of the company Kehwa Square had turned NPA including its sister business concerns, Sheikh Imran sought one time settlement with J&K Bank authorities. The bank finally granted wave off liabilities of Rs.33 crores. Pursuant to the one time settlement, M/S Kehwa group 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.
The enquiry further reveals that in order to usurp the subsidy component under the garb of promoting Horticulture activity/storage facility with the connivance of the Horticulture Officers and Bank Officials, the proprietor of M/S Kehwa Square Pvt. Ltd. Sheikh Imran and his partners to declare the CA Store as NPA without paying even a single installment towards the bank while as the cost of the project assessed subsequently during enquiry by ACB was found much lower than the projected cost.
The enquiry reveals that this criminal design of Sheikh Imran and his partners was actually executed with the active support of the Officials of J&K Bank through business unit namely M/S Go Fresh whose proprietor/s Nadeem Ahmad Mayar (Qasba) was roped in seeking a loan term of Rs. 36.10 crores with arrangement of margin money of Rs. 1.90 crores in lieu of the proposed transfer of the lease/ property rights of this mortgaged business unit i.e. CA Store Lassipora in his favour.
The proprietor (s) of M/S Go Fresh Shri Nadeem Ahmad Mayar obtained the loan amount of Rs. 36.10 Crores, he physically took over the operation of the CA storage business unit without formal transfer of assets/ liabilities in his favour. Ironically, the bank authorities extended the loan facility to the proposed buyer 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.
Enquiry has further revealed that M/S Kehwa Square Pvt. Ltd. sought further concessions from the bank subsequent to the first OTS (One Time Settlement), were sought by it surreptitiously and consented to by the bank authorities whereof the second installment of Rs. 55 crores, duly payable after the first OTS was further reduced to Rs. 27 crores.
During enquiry it has come to fore that M/S Kehwa Group in furtherance of a well knit conspiracy with respective Government agencies and bank authorities under the garb of NPA and OTS/s in mutual conspiracy illegally benefitted the proprietor/s of M/S Kehwa Group with illegal appropriation of subsidy amount of Rs. 16.50 crores and layering of various transactions.
Thus, it is established that the M/S Kehwa Group has got their loan of Rs. 138 crores with J&K Bank, restructured for an amount of Rs. 78 crores and under a well knit conspiracy Sheikh Imran and partners of M/S Kehwa Square Pvt. Ltd. was extended with covert/ overt support by Officers of J&K Bank and Joint Inspection Team, dishonestly and fraudulently, who by abuse and misuse of their official position as public servants conferred undue pecuniary/ monetary advantage on M/S Kehwa Group of Companies thereby causing illegal appropriation of crores of rupees from State exchequer, for personal motives. The investigation has been set into motion and further action as per law is in process.

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