Rs 74.27 cr loan scam involving Hilal Rather
Don’t think they are involved, says Bank official
Excelsior Correspondent
JAMMU, Feb 16: In a major development in the case involving high-profile businessman Hilal Rather, son of prominent National Conference leader and former Finance Minister Abdul Rahim Rather, the Central Bureau of Investigations (CBI) has decided to approach Central Vigilance Commission (CVC) seeking directive to the Jammu and Kashmir Bank to give nod for prosecution of its two senior officials, who are allegedly involved in the sanctioning of loan.
The CBI, according to official sources, has been forced to knock the doors of the CVC, after the Jammu and Kashmir Bank administration refused to give sanction for prosecution of its officers on the ground that they are not involved in Rs 74.27 crore worth loan scam involving Hilal Rather, who is presently on bail.
The Jammu and Kashmir Bank management has twice denied sanction to prosecute its two officials including Iqbal Singh and Arun Kapoor, who were posted in New University Campus Branch of the bank where Hilal Rather’s Simula Group had obtained term loan of Rs 74.27 crore in January 2012 when Abdul Rahim Rather was Finance Minister of Jammu and Kashmir.
“In view of denial of sanction by the Jammu and Kashmir Bank management, the CBI has decided to approach the CVC in New Delhi shortly with relevant documents and evidence seeking direction to the Bank for prosecution sanction of the officials,” sources said, adding that denial of sanction could weaken the case against Hilal Rather as well.
A senior officer of Jammu and Kashmir Bank, however, stated that the Bank had refused sanction to prosecute Managers of the Bank as they think that they were not involved in the loan scam.
“The Legal Department of the Bank has also advised against granting sanction to prosecute the Managers,” the official said, adding that every Institution has right to deny prosecution sanction of its functionaries.
This was probably first case in which Income Tax, ACB and Enforcement Directorate (ED) had conducted searches in the premises of accused persons.
The denial of prosecution sanction will certainly affect the ongoing investigations in ACB J&K, the sources said.
The loan amounting to Rs 74.27 was advanced allegedly in violation of banking norms prompting the Anti-Corruption Bureau (ACB) Jammu to register First Information Report (FIR) No. 13/2019 at Police Station of ACB Jammu in June 2019 under Section 5 (1) (d) read with 120-B RPC and 5 (2) Prevention of Corruption Act.
Former Governor Satya Pal Malik had given clear instructions to Director ACB Anand Jain to spare none in the loan scam even if they are part of top management and Board of Directors in Jammu and Kashmir Bank involving Hilal Rather. It was on the request of ACB that Malik administration had taken up the matter with the Ministry of Personnel, Public Grievances and Pensions for deputing a CBI officer to the ACB Jammu and Kashmir for supervision of all Banking matters.
Before ACB could take the investigation to logical conclusion, the ACB itself recommended transfer of the case to CBI within six months of its registration as ACB had established diversion and siphoning off of funds in USA and Dubai for which ACB had limited resources.
“Reportedly, round tripping of funds and layering of amount from one account to another within J&K Bank branches were enough to array bank employees as an accused,” sources said.
During investigation, ACB had arrested Hilal Rather in January 2020 and the case was formally transferred to CBI in March 2020. Within 10 days, CBI filed charge sheet vide no. RC0042020A0002 on 14.03.2020 on the basis of investigation conducted by ACB Jammu failing which Hilal Rather would have become entitled to bail in default.
The charge sheet was filed by CBI pending prosecution sanction in the court of Special Judge Anti Corruption Jammu in one small portion of Term Loan-I against Hilal Ahmed Rather, Iqbal Singh and Arun Kapoor.
The CBI charge sheet had stated: ” further investigation on certain vital points including end use of funds, diversion of funds, role of officers of CHQ and Board of Directors and partners of the firm with regard to all four term loans is still continuing to establish the role of other public servants and private persons/partner and employees of the firm etc in the instant matter and also to collect more evidence against Hilal Rather, Iqbal Singh and Arun Kapoor. After completion of investigation, the result of the same will be submitted before the Court under Section 173 (8) CrPC in due course”.
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