J&K ACB Files Corruption Cases Against Former Managing Director of State Handloom Development Corporation

Jammu: The Anti-Corruption Bureau (ACB) of Jammu and Kashmir has registered two cases against Rakesh Sharma, the former Managing Director of J&K State Handloom Development Corporation Ltd., following allegations of corruption and unauthorized appointments during his tenure. The first case, registered under FIR No. 11/2024 at the ACB Police Station in Jammu, revolves around the alleged misuse of funds allocated for the procurement of handloom machinery. According to the ACB, a preliminary enquiry revealed that ₹6 crore was allotted for the purchase of handloom machinery for the Samba project. However, instead of acquiring the required handloom equipment, Rakesh Sharma allegedly procured Airjet looms that did not meet the specifications and pocketed substantial commissions from the manufacturers.

The investigation found that the J&K State Handloom Development Corporation had floated a Notice Inviting Tender (NIT) for the procurement of 10 looms with specific criteria. Five firms participated in the tendering process, with M/S AAR AAR Enterprises, Panipat emerging as the lowest bidder, offering each loom at ₹12.25 lakh plus GST. Despite this, the Corporation bypassed the lowest bidder and procured six looms from M/S Shree Tex Engineers, Palghar, Maharashtra, at a significantly higher cost of ₹96.80 lakh plus GST from the open market.

The ACB alleges that this decision was part of a larger conspiracy, wherein officials of the Handloom Development Corporation, in collusion with the proprietors of M/S Shree Tex Engineers, canceled the tendering process midway to secure personal financial gains. This fraudulent act led to a considerable loss to the state exchequer.The second case, registered under FIR No. 12/2024, also targets Rakesh Sharma for allegedly making unauthorized appointments and promotions during his tenure. The ACB’s investigation uncovered that Sharma had approved the appointment of 14 individuals through backdoor means without advertising the posts, violating established procedures and granting undue benefits to the appointees.

Further scrutiny revealed that Sharma also engaged in widespread irregular promotions within the Corporation. He promoted 58 officers and officials based on the recommendations of the Departmental Promotion Committee (DPC). However, he also made an additional 137 promotions without DPC recommendations or considering the availability of vacant posts. Some employees received promotions despite not meeting the prerequisite of three years in their current positions, and many promotions exceeded the sanctioned strength of the Corporation.

The ACB is continuing its investigation into both cases to gather more evidence and hold all responsible parties accountable. The alleged actions of Rakesh Sharma have raised serious concerns about governance and financial integrity within the J&K State Handloom Development Corporation. As the investigation unfolds, the focus remains on bringing those involved to justice and preventing further misuse of public funds.

These cases highlight the ongoing efforts of the Anti-Corruption Bureau to root out corruption and ensure transparency in the functioning of public institutions in Jammu and Kashmir. The outcome of these investigations could set a significant precedent for accountability in the region.