Nearly 70 entities have come under the scanner of the Enforcement Directorate (ED) in connection with the money laundering investigation into the J&K Bank-related cases registered by the Anti-Corruption Branch (ACB) of the Jammu and Kashmir government.
The primary allegation being probed is the diversion of funds received from the bank in the form of credit facilities through these entities, which include companies that received loans. The agency suspects that several of these companies were incorporated solely for the purpose of money laundering and they were later shut down after routing the funds.
Two of the cases being investigated by the ED are related to a group whose two companies are said to be involved in a bank fraud involving over ₹300 crore.
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One of the firms did not pay up the outstanding amount and the loan amount became non-performing asset (NPA) and the issue was subsequently settled in its favour through a one-time settlement, allegedly as part of a conspiracy with bank officials.
In another case, the ACB alleges fraud involving ₹1,124 crore. According to the agency, officials of the J&K Bank’s Mahim branch in Mumbai and in Delhi’s Ansal Plaza sanctioned loans to the tune of ₹800 crore in favour of REI Agro Limited during 2011-13 on fake documents. The loan accounts turned NPA in 2014.
The company, which showed its head office in Kolkata and corporate office in Delhi, had approached the bank’s Mumbai branch and got the loans and advances to the tune of ₹550 crore sanctioned in its favour. Another amount of ₹139 crore as supplier bill discounting facility and takeovers was extended by the bank’s Vasant Vihar branch.
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The ACB is investigating another ₹350-crore fraud case allegedly involving one Rawther Spices.