JKPF alleges exposure of "Biggest Banking Fraud" in J&K, demands high level probe from RBI and Finance Ministry

Srinagar, Oct 4: The J&K Peace Forum on Saturday alleged what it termed the biggest banking fraud in Jammu and Kashmir’s history, claiming that loans were sanctioned by J&K Bank against rent agreements executed in the names of tenants occupying temple lands and other religious properties.

In a press statement, the J&K Peace Forum said that it has blown the lid off what could be the biggest banking fraud in the history of Jammu & Kashmir – loans sanctioned by J&K Bank against mere rent agreements, using the names of tenants occupying temple lands and religious properties.

“This is not banking negligence – it is an organized loot of public money,” said Satish Mahaldar, Chairman of J&K Peace Forum, who has already placed irrefutable evidence before the Court and relevant authorities.

The Explosive Allegations

According to the Forum, J&K Bank employees sanctioned loans without conducting due diligence and bypassed mandatory safeguards. It further alleged that insiders in the State Revenue Department leaked sensitive records of temple and community lands, which were then misused. Supervisory bodies and auditors, the Forum claimed, remained silent despite repeated red flags.

“This racket is not only financial malpractice,” Mahaldar declared, adding that “It is an assault on religious sanctity, a betrayal of millions of depositors, and a collapse of regulatory oversight.”

Demands from the RBI & Finance Ministry

The J&K Peace Forum has demanded an immediate high-level probe into "fraudulent" loan sanctions; Public naming and shaming of all officers involved; Criminal prosecution of the nexus between bankers, officials, and beneficiaries; and Structural reforms to safeguard public data, strengthen vigilance, and ensure transparent lending.

If such scams go unchecked, the Forum said, sacred institutions will be reduced to collateral for criminal profiteering, and India’s banking credibility will stand shattered before the world.

“This is a defining test for the Reserve Bank of India and the Finance Ministry. Will they act against this brazen fraud or allow it to be buried in files?” asked Mahaldar.

The J&K Peace Forum has vowed to take this issue to the highest levels, warning that public trust in India’s banking system is at stake.