Major Bank Fraud Uncovered in Jammu & Kashmir
The Crime Branch of Jammu and Kashmir Police has arrested five individuals, including a former manager of Jammu and Kashmir Bank, for their alleged involvement in a multi-crore rupee J&K Loan Fraud scam. The arrests were made as part of an ongoing investigation into fraudulent loan disbursements that caused significant financial losses to the bank.
Case Background Of J&K Loan Fraud: How the Fraud Unfolded
The case, registered in 2023, stems from a written complaint filed by Mohammad Shakeel, the Chief Manager of the Supervision and Control Division at the bank’s Jammu zonal office. The complaint detailed how a group of fraudsters manipulated inactive bank accounts and forged documents to secure substantial loans fraudulently.
Modus Operandi in J&K Loan Fraud: Fraudulent Loan Acquisition
According to the Crime Branch, Saleem Yousuf Bhatti, a contractual employee of the Integrated Watershed Management Programme (IWMP), Poonch, orchestrated the scam alongside accomplices. The accused allegedly:
- Reactivated inactive watershed committee accounts at the bank’s Lassana branch in Surankote.
- Altered account nomenclatures and fabricated salary certificates and confirmation letters.
- Posed as government employees to obtain various loans, including personal loans, cash credit loans, and car loans.
- Opened fraudulent government accounts at the bank’s Mendhar and Mendhar Bus Stand branches.
- Deposited funds into fake accounts using different bank branches before issuing fake authorization letters to transfer salaries into their personal accounts.
- Fraudulently secured Rs 5 crore in loans from various Jammu and Kashmir Bank branches, resulting in substantial financial losses.
Crime Branch Investigation & Arrests
The Crime Branch pursued the case aggressively, leading to the arrest of five individuals involved in the scam:
- Jatinder Singh (Then Manager, Scale-II, Rajouri branch, later demoted) – Resident of Jammu.
- Mohammad Kabir – Resident of Poonch.
- Mohammad Zafeer Khan – Resident of Poonch.
- Zafar Iqbal – Resident of Poonch.
- Mohammad Shakeel – Resident of Rajouri.
These arrests mark a significant step in uncovering the fraud and holding those responsible accountable.
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Legal Action and Future Course
The arrested individuals are currently under investigation as the Crime Branch works to recover the embezzled funds. Authorities are also examining whether additional suspects were involved in the fraudulent loan scheme.
Meanwhile, the Jammu and Kashmir Bank has pledged to strengthen its fraud detection and security protocols to prevent similar incidents in the future.
Public Awareness & Bank Security Measures
Authorities urge the public to remain vigilant against financial frauds. If anyone suspects irregularities in banking transactions, they should report them to the relevant financial authorities or law enforcement agencies immediately.
The Crime Branch remains committed to ensuring justice and restoring the integrity of the banking system in Jammu and Kashmir.
This multi-crore rupee loan scam highlights the importance of stringent banking verification processes and fraud detection mechanisms. As investigations continue, law enforcement agencies aim to recover the misappropriated funds and implement stronger banking security measures to safeguard public money.
