SRINAGAR — The Central Bureau of Investigation (CBI) has booked the former Deputy Mayor of Srinagar Municipal Corporation and Director Kehwa Group Sheikh Imran for multi-crore cheating of the Jammu and Kashmir Bank.
Imran has been accused of misappropriating the funds provided as subsidy given for setting up a controlled atmosphere store or cold storage.
The group got various credit facilities of Rs 138 crore, which was allegedly restructured in connivance with the bank officials for Rs 78 crore.
The case was earlier being probed by the Anti-Corruption Bureau (ACB) which had arrested Imran in December 2019. The agency had then said a significant portion of the loans meant for the construction of the storage by the Kehwa Square Private Limited in Pulwama was diverted.
During the inquiry, it was found that the group had six other business units and they had raised loan facilities of Rs 138 crore. As one of the loan accounts had turned non-performing asset, Imran had applied for one-time settlement with the bank.
Accordingly, in conspiracy with some bank officials, the restructuring led to deduction of the final amount from Rs 138 crore to Rs 78 crore.
Several other financial irregularities were also detected by the authorities concerned. These include misappropriation of subsidy with inflated project cost for establishment of a CA storage at Lassipora, Pulwama, in South Kashmir.
It was found that for the establishment of integrated CA storage project with a total capacity of 5000 MT eligible for the cost of Rs. 33 crore under erstwhile Horticulture Mission for North East and Himalayan States (HMNEH) Scheme based on the certificate given by the Bank, Rs 16.50 crore @ 50 % eligible project cost (EPC) was sanctioned in favour of the company.
The proposal was approved by the empowered monitoring committee of the Mission for Integrated Development of Horticulture (MIDH).
The inquiry had found that the Kehwa Group has six more business units and Imran raised varied loan facilities and overdrafts for these units.
The liabilities on account of loan accumulated to Rs 138 crore. Since, one of the company Kehwa Square had turned non-performing asset, Imran sought one-time settlement with the JK Bank authorities. — (Agencies)