Srinagar: The Enforcement Directorate (ED) has filed a prosecution complaint under the provisions of the Money Laundering Act (PMLA), 2002, in the designated court in Srinagar.
An ED press release said: “ED Srinagar Zonal Office has filed a Prosecution Complaint (PC) under the provisions of Prevention of Money Laundering Act (PMLA), 2002 before the Special Court (PMLA), Srinagar against Mukti Nath Doley, Ex Branch Manager, Canara Bank; Irfan Manzoor Darzi, Shah Nawaz Shah of M/s SMC Tours and Travels, New Delhi; Md. Parwez Mughal of Raffal World, Srinagar; Md. Asaraf Dev of M/s Rafraf Tours and Travels, Budgam; Sayed Kaushar Niyazi of M/s Syed Tours and Travels, Srinagar; Rayees Manzoor Darzi of M/s Rayees Tour and Travels; Mudasir Nazir Wani of M/s Travel King; Irfan Rashid Khan of M/s JK Makkah Jewellers, Rajouri; Ishfaq Ahmad Zargar of M/s Nikha Ornaments, Srinagar, and Khalil Ahmad Mughal of M/s JK Gold Jewellery, Rajouri, in the case of Canara Bank fraud in the state of Jammu & Kashmir ….”
The Special Court has taken cognisance of the Prosecution Complaint, the press release said.
It said ED initiated an investigation on the input of FIR registered by Maisuma Police Station, Srinagar (J&K) against the above-named persons and others for causing loss to the tune of Rs. 5.59 Crore to Canara Bank, Budshah Chowk Branch, Srinagar (J&K).
ED investigation revealed that during 2014, the above-named accused persons, along with the 26 other borrowers, in connivance with M N Doley, the erstwhile Branch Manager, Canara Bank, availed cash credit loans, totalling to the tune of Rs 30 crore in the names of non-existent proprietorship entities.
“This was done based on forged and fake documents, which were later siphoned off by the accused persons, after routing the loan proceeds through various bank accounts of other entities/persons,” the ED said, adding that ultimately they utilized the funds for personal benefits.
“Such a misappropriation was contrary to its intended purpose of business loans. All the loans sanctioned by M N Dole were in gross violation of bank policy, which later started to become NPAs since 2016.
“This caused huge losses (of loan amount and interest thereof) to the public money, handled by Canara Bank, Budhsah Chowk, Srinagar (J&K).
“During the investigation, it also came to light that significant portions of these loan proceeds were shared by Mukti Nath Doley, Shahnawaz Shah, Irfan Manzoor Darzi, and the other accused persons, for their benefits,” ED said.
It said earlier in this case, immovable properties equivalent to Rs. 4.81 crore were attached, pertaining to Ishfaq Ahmad Zargar, Asaraf Dev, Sayed Kauser Niyazi and Khalil Ahmad Mughal.
The ED said further investigation is still going on in the case.
