Registration of FIR by the Central Bureau of Investigation (CBI) against Gurugram's Ambience Mall owner Raj Singh Gehlot in a fraud case of over Rs 289 crore has authenticated allegations that hundreds of crores of public money went down the drain with the connivance of some officers of the Jammu and Kashmir Bank Limited with big business houses.
While higher-ups of the J&K Bank avail every opportunity to harass small borrowers, no action has been taken against big business houses. As per reports, along with Gehlot, some officials of J&K Bank have also been put under investigation for allegedly conspiring to defraud public money.
According to the FIR, the CBI found the allegations that the officials of J&K Bank's Ansal Plaza branch in New Delhi had issued loans worth hundreds of crores of rupees in the name of Gehlot's firm, Aman Hospitality Private Limited.
Later, with the connivance of the firm and bank officials, the loan amount was declared a Non-Performing Asset (NPA) to facilitate a one-time settlement. This was done for giving an advantage to the firm.
How fraud was committed?
As per reports, Aman Hospitality Private Limited, obtained a term loan of Rs 227 crore from J&K Bank. It had acquired Rs 15 crore as bank guarantee limit while availing the rest of the loan amount. The project included building a five-star hotel in Shahdara.
Interestingly, the bank authorities sanctioned a loan worth Rs 227 crore against the mortgaged land worth Rs 41 crore only.
J&K Bank officials have been accused of helping Raj Singh Gehlot and the promoters-directors of Aman Hospitality Limited, Dayanand Singh and Aman Gehlot, in committing the fraud.
Quoting officials of the CBI, it was reported in a section of media that "J&K Bank illegally and with malafide intentions settled loan amount for an amount of Rs 128.94 crore against the total outstanding amount of Rs 289.28 crore, which was less than the principal amount of Rs 261.47 crores."
Gehlot was arrested by ED in July
Gehlot was arrested by the Enforcement Directorate (ED) in July this year and sent to ED custody for seven days. He questioned how money was routed to different companies and how he made the J&K Bank settle for Rs 128 crore in place of Rs 289.08 crore.
Gehlot was arrested by the ED on July 28 and produced before a PMLA court via video conferencing on July 30.
Earlier ACB present a chargesheet against Gehlot
Before CBI has taken over this case, the Anti-Corruption Bureau (ACB) of the J&K government had presented a chargesheet against Gehlot in March this year. Along with Gehlot, chargesheet was filed against Rakesh Kumar Kharyal and Kuldeep Gupta, then Managers of J&K Bank Ansal Plaza Branch, New Delhi, and others in 270 Crore J&K Bank loan fraud case.
FIR No. 15/2019 dated 24.07.2019 of PS ACB Srinagar was registered based on source information, which was the outcome of a verification conducted into the allegations of financial irregularities in the loans availed by M/s Aman Hospitality Pvt. Ltd. New Delhi from the Ansal Plaza Branch of the J&K Bank New Delhi.
The firm had availed loans for the construction of a five-star hotel in Delhi with a project cost estimated at Rs. 866.89 crores to the tune of Rs. 227 crores as 'Term Loan' along with 'Bank guarantee' of Rs. 15 crores. The rest of the loans were availed from other banks by the firm as part of a consortium loan for the construction of the five-star hotel.
However, while looking into the allegations mentioned in the FIR investigation revealed that instead of using the loans sanctioned for the purpose of construction of the hotel, it was diverted/siphoned out for various other purposes and misappropriated by the borrower Raj Singh Gehlot.
The investigation has established that out of the Rs. 100 crores sanctioned as 'Term Loan' in the first phase to M/s AHPL an amount of Rs. 35 crores has been diverted by Raj Singh Gehlot Managing Director Of M/s AHPL in connivance with the Bank officials and other co-accused and through fictitious firms, which were created for the said purpose and also by layering the funds through other banks in a complex maze of transactions and this manner cheated the J&K Bank Ansal Plaza Branch to the tune of Rs. 35 crores.
Further investigation into the remaining diversions is in progress apart from the allegations of illegally entering into an OTS to the firm advantage by J&K Bank officials.
Former Speaker of J&K Legislative Assembly had exposed names of big defaulters
In the year 2018, former Speaker of the J&K Legislative Assembly Mohammad Akbar Lone had exposed names of defaulters of the Bank including politicians of all political parties of J&K.
J&K Govt's stake in Bank to up to 74.24%
Three days ago, the Reserve Bank of India (RBI) has allowed the government of Jammu & Kashmir to acquire over 16.76 crore shares in Jammu & Kashmir Bank on a preferential basis. The J&K government's equity stake will rise to 74.24 percent in the bank after the allotment. The issue follows a recent decision of the J&K government to transfer an 8.23 percent stake in the bank to the Union Territory of Ladakh.
"The RBI vide its letter dated September 2, 2021, has accorded approval to the government of Jammu & Kashmir to acquire 16,76,72,702 fully paid-up equity shares on preferential basis, i.e., up to 74.24 percent of the post issue paid-up voting equity capital of the bank subject to compliance of regulatory requirements," J&K Bank said in a filing with stock exchanges on Friday.
