Onlykashmir.in News Desk
The Jammu and Kashmir High Court has quashed the FIR against former J&K State Cooperative Bank Chairman Mohammad Shafi Dar in connection with a ₹250 crore loan scam, ruling out evidence of money laundering. Justice Javed Iqbal Wani found no “proceeds of crime” linked to the petitioners, including Hilal Ahmad Mir, Chairman of the River Jehlum Co-operative House Building Society. The case stemmed from a loan sanctioned by the J&K State Cooperative Bank to the society for developing a satellite township in Srinagar, which was alleged to be fictitious.
The Enforcement Directorate (ED) had accused the petitioners of bypassing standard procedures like KYC norms and tangible security, leading to a fraudulent loan. However, the court observed that the loan amount was directly credited to the landowners’ accounts, thus dismissing the possibility of the petitioners engaging in money laundering. The court’s decision aligns with the Supreme Court’s earlier order, which allowed the landowners to withdraw the attached funds, further validating the transaction’s legitimacy.
The petitioners argued that the funds never came under their possession, which the court accepted, noting that there was no evidence of the petitioners controlling or using the loan money. The Anti-Corruption Bureau (ACB) had initially registered an FIR under the J&K Prevention of Corruption Act and the Indian Penal Code, but the High Court’s ruling has brought relief to the accused, clearing them of the money laundering charges.
