Crime Branch Kashmir registers case in Rs 3.09 Cr loan fraud

Srinagar, Sep 4: The Economic Offences Wing of the Crime Branch Kashmir has registered a case into a Rs 3.09 crore loan fraud involving the Hatigam Multipurpose Cooperative Society (MPCS), Anantnag, following a complaint by the General Manager of Anantnag Central Cooperative Bank Ltd.

According to the complaint, loans worth Rs 3.09 crore were sanctioned in 2014 to 127 members of MPCS Hatigam. While Rs 2.50 crore has since been recovered, an outstanding amount of Rs 1.21 crore remains unpaid against 39 members. Interestingly, many of these alleged defaulters maintained that they had already cleared their dues directly with the Society and even produced receipts to substantiate their claims.

A preliminary probe revealed that officials of the Cooperative Bank, in collusion with MPCS members, had fraudulently processed loans in the names of non-existent individuals. The funds, investigators allege, were misappropriated and siphoned off for personal gain.

The investigation has so far identified several individuals from Hatigam, Anantnag, including members of the family, as being prima facie involved in the scam. Their roles in fabricating loan cases and diverting funds are under detailed scrutiny.

Subsequently, an FIR has been registered at Police Station Economic Offences Wing, Crime Branch Kashmir, under Sections 420, 468, 471, and 120-B of the RPC, read with Section 5(2) of the Prevention of Corruption Act. Officials confirmed that further investigation is underway to establish the full extent of the fraud and the involvement of additional suspects.