ACB operation ends at JK Bank:   Agency investigating “dubious credentials & shady reputation” of Parvez

Srinagar, Jun 09 : The anti-corruption bureau (ACB) concluded its search operation in J&K Bank today. The searches of the corporate headquarters and other premises of the Bank had started yesterday soon after the unceremonious removal of its chairman Parvez Ahmed Nengroo. Notably, the ACB registered an FIR against the ousted chairman of the bank, said ACB.

It said that further investigation is going on.

The ACB is investigating the allegations of illegal appointments in the bank during PDP-BJP government and several other complaints. (KNS)

Decision to remove Chief was part of long term measures for improving functioning of the JK bank in accordance with RBI guidelines: Govt

It’s worth mentioning that the anti corruption bureau sleuths ,looking into the allegations of money laundering,fraudulent appointments in Bank again raided its corporate headquarters second day today. The searches by ACB began in the banks headquarters at TRC Srinagar amid tight security. Large number of police and para-military ,Central Reserve Police Force (CRPF) personnel were deployed outside the bank as the raids inside the bank continued throughout the day.

Parvez Ahmed ,who was removed as the chairman of the Bank, is facing the serious allegations of corruption, nepotism and money laundering activties, said ACB officials.

The officials said that the action against the ex-chairman is an effort to combat such activities and bring mighty  people with dubious credentials before law,officials said Sunday.

Ahmed was appointed as chairman of the J&K Bank in October 2016 and his tenure was to end in a few months.

The government official said Ahmed had a meteoric rise from a CA to chairman within a span of 15 years and has a “dubious credentials and shady reputation”.

The central government is fully committed to implement its policy of zero tolerance against corruption, terrorism. It’s firm on establishing the rule of law and action against the high and mighty corrupt persons has been a high priority for the MHA, the official said.

A number of steps has been taken recently by the central agencies like the Enforcement Directorate, NIA, CBI, CBDT and J&K government against corruption and terror-funding.

The removal of the chairman of J&K Bank is yet another step to combat corruption and bring the mighty corrupt people before law, another official said.

In its efforts to crackdown on corruption, nepotism, favouritism, and striking against the backdoor non-transparent employment, the MHA had called for cleaning of the J&K Bank and bringing transparency and accountability, while ensuring compliance with RBI directives to bring checks and balances.

The J&K Bank was also directed to separate the positions of chairman and managing director for better governance and ensure high levels of financial probity, the official said.

Among the nine Board of Directors in the J&K Bank, two are from the Kashmir Valley the chairman himself and businessman Ashraf Mir.

It has been alleged that Ahmed got his nephew, Muzaffar, posted into his office immediately after taking over as chairman.

His daughter-in-law, Shazia Ambreen, was also allegedly appointed as a Probationary Officer and is currently heading the Hazratbal branch, the official said.

Two branches of J&K Bank, Kaprin in Shopian and Wuyan in Pulwama, operate allegedly from his own premises and those of his in-laws, the official said.

Two of his relatives, Asif Beg and M. Fahim, both nephew, allegedly control the HR and Board affairs including the credit proposals.

Recently the J&K Bank signed an insurance deal with IFFCO Tokio General Insurance Company where the chairman’s sister’s son reportedly works, according to the official.

Interiors of hundreds of the branches were allegedly allotted to select individuals for Rs 50 lakh to Rs 1.5 crore per branch while actual cost is only 30 per cent of the money paid, it is alleged.

It was also alleged that a 12th grade pass brother of a former minister and a relative of a top politician was appointed directly as manager allegedly through back door and posted in JK Bank’s Bhaderwah branch.

Loans worth hundreds of crores were allegedly allotted without formalities in “brazen violation” of Standard Operating Procedures or guidelines to select recommendees of two politicians.

Overdrafts of hefty amounts were allegedly released to habitual defaulters of other banks. Many of such accounts turned Non-Performing Assets.

One-time settlements were done with select defaulters against alleged huge kickbacks.

It was alleged that Rs 8 crore has been spent as corporate social responsibility (CSR)on beautification of a golf course.

It was also alleged that Rs 30 lakh was paid to a particular media outlet for publishing advertisements to highlight the budget but there was little visibility, the official said.

ACB Kashmir has registered a case under Prevention of Corruption Act on outcome of a written complaint received in ACB, Hqrs. J&K, to look into the allegations related illegal/fraudulent appointments made  in JK bank. Sources said that the ACB sleuths seized documents from the Bank Chairman’s office and from the office of Human Resource Section pertaining to appointments made in the bank for last few years and they also seized the records of the promotions and transfers in the bank..

Since the allegations reflected in the complaint disclose commission of criminal misconduct by Officers/officials of J&K, bank which constitute offence under section 5(1)(d) of Prevention of Corruption Act  Samvat-2006 and punishable under section 5(2) of the Act,  Case FIR No. 10/2019 was registered in P/S Anti Corruption Bureau Central Kashmir Srinagar and investigation of the case was taken up.

Keeping in view the concerns expressed in various quarters regarding the governance and functioning of the bank,the government has decided to take long term measures to improve its functioning so that it becomes a shining example of a well managed government owned bank, an official spokesman said .