Rs 250cr loan scam: No HC relief for accused bank chairman

SRINAGAR: Jammu and Kashmir high court (HC) on Wednesday rejected the plea of sacked J&K Cooperative Bank Limited chairman Mohammad Shafi Dar to quash the FIR against him in the bank loan scam of Rs 250 crore registered by the Anti-Corruption Bureau (ACB).
Dar had sanctioned a loan worth the huge amount in favour of a non-existent cooperative society named “River Jhelum Cooperative House Colony” at Shivpora Srinagar. After an ACB inquiry and subsequent registration of an FIR, the J&K administration dismissed Dar and two other officials of the bank.
Dar sought the quashing of the FIR lodged by ACB by urging the HC to exercise its inherent powers stemming from the provisions of Section 482 of the Code of Criminal Procedure. He had also sought directions to the ACB to restrain from interfering with the management of J&K Cooperative Bank or “harassing” him.
Dismissing Dar’s request, Justice Vinod Chatterjee Koul said: “The petitioner (Dar) fails to make out a case for exercise of inherent powers under Section 482 CrPC to quash the FIR. The case is still under investigation and agency concerned is in the process of collecting evidence. The investigation is necessary and the same cannot be stopped, at this stage… As a sequel thereof, the instant petition is dismissed.”
The chairman of the so-called cooperative society, Hilal Ahmad Hilal of Srinagar’s Magarmal Bagh, was arrested by the ACB on May 18. However, Dar — also accused of making backdoor appointments — has not yet been arrested yet.