NEW DELHI: Former J&K chief minister Mehbooba Mufti is under investigation in connection with the J&K Bank scam for which she has now been summoned by the Enforcement Directorate, according to top sources.
Two-and-half months ago, the ED had seized Rs 28 lakh ‘unexplained’ cash from the premises of a close aide of the former CM, Anjum Fazili.
According to sources, the agency had seized evidence related to the J&K bank scam during searches at Fazili’s premises in Srinagar and Delhi in December last year.
The probe into the bank revealed irregularities such as sanctioning of huge loans without collaterals to entities that had defaulted and their accounts turned NPAs.
Two former chairmen of J&K Bank have been accused of being in league with the political establishment and appointing people at key positions in the bank to facilitate loan scam.
Accounts were opened in J&K Bank in violation of KYC guidelines, using fictitious documents.
Besides Mehbooba Mufti, former J&K CM and National Conference president Farooq Abdullah is also being investigated in the J&K scam.
Abdullah, during his tenure as CM, had also allegedly opened a “duplicate” account of the J&K Cricket Association in the J&K Bank with his personal authorization as the then president of JKCA.
Later, the ED had claimed that its investigation revealed serious charges of loan frauds to the tune of Rs 7 crore against the former chief minister and some of his close aides.
Fazili, a former MLA, is considered close to Mehbooba Mufti.
Searches were carried out after the agency registered an investigation under the Prevention of Money Laundering Act in the J&K Bank scam case.
During the searches at Fazili’s residences in December, the ED had recovered Rs 21.38 lakh from Srinagar and Rs 6.62 lakh from Delhi.
Reacting to ED raids on Fazili, Mufti had then said that raids are conducted on “anyone and everyone close” to her, terming the ED action as a “witch hunt”.
Already, the Anti-Corruption Bureau of J&K has filed charge sheets in the J&K Bank scam where it has accused two of its former chairmen of several irregularities, including loan frauds and appointments.
Between August and September last year, the ED had carried out several searches across India and unearthed evidence of loans issued on fictitious documents and to ineligible business groups lacking adequate collaterals.
In one case Rs 250 crore was sanctioned to a fictitious cooperative housing society in Srinagar which did not exist.