ED questions Omar Abdullah in J&K Bank case, NC says targeting Opposition

Abdullah is being questioned by agency sleuths at its headquarters in New Delhi, sources said.

The National Conference called the development “political in nature” and a “fishing expedition”. It also raised questions on why Abdullah was called to Delhi during Ramzan when Delhi is not his primary residence.

Sources said Abdullah is being questioned in connection with certain directors he allegedly got appointed in the Bank.

The J&K Bank has been under probe since 2019 for alleged irregularities in disbursal of loans, nepotism in appointments and functioning of the Bank. Multiple FIRs against the bank and its office bearers were filed by the Anti-Corruption Bureau of Jammu and Kashmir in the year whe the Centre on August 5 announced abrogation of Article 370 and bifurcation of the state into two union Territories.

Based on these FIRs, the ED registered a case of money laundering the same year. The agency has earlier also summoned PDP chief Mehbooba Mufti in connection with the case.

“The central government has made a habit of misusing investigative agencies and this is another step in the same direction. No political party that puts up meaningful opposition to the BJP has been spared, whether it is the ED, CBI, NIA, NCB – all have been used for political purposes,” JKNC said in a statement.

Raising questions on the timing, it said, “Inspite of it being the holy month of Ramzan, and Delhi not being his primary place of residence, Mr. Abdullah did not seek a postponement or a change of venue and appeared as per the notice.”

Claiming innocence, the statement added, “We have no doubt that this fishing expedition will yield no concrete results to the BJP… Even though this exercise is political in nature, Mr Omar Abdullah will cooperate with investigative agencies as there is no wrongdoing on his part and he is not an accused in any matter under investigation.”

Before the August 5, 2019 decisions, the Centre had already removed Chairman of J&K Bank, Parvez Ahmed. In its efforts to crackdown on alleged corruption, nepotism, favouritism, non-transparent employment, the Ministry of Home Affairs had called for cleaning of J&K Bank and bringing transparency and accountability in the functioning of the Bank while ensuring compliance with RBI directivesto 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.

According to sources, both the ACB and the ED have been probing how hundreds of the branches were allotted to select individuals for Rs 50 lakh to Rs 1.5 crore a branch while the actual cost is only 30% of the money paid; how a 12th pass brother of a former minister and an ex CM’s relative was appointed directly as manager through back door and posted in JK Bank branch of Bhaderwah; how loans worth crores were allotted without formalities in brazen violation of SOPs/guidelines to select persons recommended by politicians; how ODs of hefty amounts were released to habitual defaulters of other banks.

Apart from this, one-time settlements were done with select defaulters allegedly against huge kickbacks, even as Rs 8 crore were spent as CSR on beautification of Royal Spring Golf Course that an official said has no utility for common people.