Bhatindi based businessman, ex-Govt employee surface in J&K Bank’s internal probe

Over Rs 15 cr embezzled from J&K Bank; loans advanced on fictitious salary slips

VIVEK SHARMA

JAMMU: In a sensational fraud case, a Bhatindi based businessman, running nationally renowned salons chain in Jammu and Srinagar cities, along with a terminated clerk of J&K integrated Watershed Development Project took the J&K Bank’s management to ride by embezzling crores of rupees using fictitious documents.
Million dollar question arises why J&K Bank management is hesitant to report this embezzlement case to any investigating agency—Crime Branch (CB) or the Central Bureau of Investigations (CBI)– as the loss to bank runs in multi crore rupees. Speculations are rife that the same modus operandi might have been adopted many times.
Insiders say there are two reasons why the bank is delaying to lodge FIR and initiate probe by its Supervision and Control Division (SCD) also called J&K Bank’s Vigilance Cell. One apparent reason is alleged to be the involvement of a long list of senior officers of the bank. The modus operandi adopted in the instant case has shocked the bank management, which is assessing and analysing the quantum of fraud which may be bigger than their imagination.

No fraud is possible without internal support, say ex J&K Bank employees

So far, around 100 cases of loan, majority of these advances for purchase of luxury cars, have been sanctioned by the various branches in the Jammu City besides Rajouri and Mendhar.

STATE TIMES in its edition dated December 19, 2022 exclusively exposed the racket under caption “Over Rs 15 cr embezzled from J&K Bank; car loans on fictitious salary slips…’National Horticulture Mission’ account opened on-email at Mendhar branch.”
After publication of the report, even the bank staffers are wondering why the bank management is hesitant in lodging FIR for thorough investigation of the fraud case. They blame the banks management for adopting delay tactics by initiating internal audits and conducting inquiries as an eye-wash.
Internal sources alleged that the bank management is in know of the accused involved, directly or indirectly, in this scam. Once the case is given to CBI, the facts will automatically come to fore, they say.
According to sources the Bank’s Vigilance Cell has sounded alert after few car loans linked to one major account, turned defunct. The luxury cars like Audi and BMWs have been purchased by the dupers using fictitious salary slips.
An account in the name of National Horticulture Mission was opened through an e-mail last year in Mendhar Branch of the J&K Bank as a government account, which started operating with deposits of lakhs of rupees purportedly from the government.
Consequently, around 40 more individual bank accounts of the employees were opened and the salaries from the main accounts were transferred to the account of presumed employees. After few months, the employees, though fictitious, used their salary slips and bank statements, applied for car loans from various J&K Bank branches at Mendhar, Rajouri, Jammu University Campus and Shalamar Road in Jammu.
The loans were approved and luxury cars were purchased by the so-called employees. An Audi car purchased on loan from Jammu landed in probe as one of loanees stopped paying installments after two months and subsequently on initial inquiry the loanee’s address also turned out to be fictitious. On initial probe, other loanees’ addresses too were found to be fake.
This raised eyebrows of J&K Bank’s management which started probing the matter and found that the main account was also fictitious. There is no such organisation under name and style “National Horticulture Mission,” being run by the UT or central government.
As J&K Bank is mute over Mendhar fraud worth Crores, staffers fear hushing-up of case.
Talking to STATE TIMES, several employees said that the first reaction of the management should have been to file an FIR with the concerned police station and press for a probe, ideally by the Central Bureau of Investigation. As such an action has not been taken yet, the motive is evident that the Bank does not want to pursue the matter for the sake of its credibility. This will be ‘suicidal’ as the fraudsters and the executives may get emboldened and motivated to carry on their sinister scams.
“Had any such lapse been committed by ‘non-influential’ officers or staffers, they would have been held responsible for the NPA and delivered exemplary punishments”, a staffer told STATE TIMES on the condition of anonymity. He said the Mendhar fraud is extraordinary and nobody knows how deep it has spread its tentacles in the peripheral areas and even in the other districts. Only a fair and independent probe will unveil the facts as to how the Bank was taken for a ride by opening an account on e-mail by a bogus organisation, projected as a public sector institution, he added.