The Enforcement Directorate (ED) is investigating several accounts with the J&K Bank, in which huge amounts were deposited and then withdrawn in cash over a period of time.
The agency is trying to ascertain the source of deposits in such accounts.
Based on the cases registered by the Jammu and Kashmir's Anti-Corruption Branch (ACB), the ED is already carrying out a money laundering probe into a range of allegations involving the bank, its former functionaries and others. Loans sanctioned to several companies are also under the scanner.
On October 19, the ACB said it had registered an FIR following a preliminary enquiry into charges that during 2011-13, some officials of the bank in Mumbai and Delhi had sanctioned loans to the tune of ₹800 crore in favour of REI Agro Limited, on fake documents and in violation of the rules.
The bank officials and the company allegedly knew that the loan amount had to be disbursed among farmers for paddy production. The funds were released through joint-liability groups, even when the company has already received the paddy.
These loans were sanctioned or disbursed in connivance with the then Chairman of the J&K Bank Mushtaq Ahmad Sheikh, causing a loss of ₹1,124.45 crore to the bank, alleged the anti-corruption body.
The ACB is also pursuing the allegations of irregular appointments in the bank at the instance of some influential political leaders of the State.
