ED Files Prosecution Complaint Against J&K Gramin Bank Manager for sanctioning Wrong Loans
The Enforcement Directorate (ED), Srinagar Regional Office, has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002, in the Jammu and Kashmir Gramin Bank fraud case. The complaint was submitted to the Special Court (PMLA), Srinagar, on March 12, and the court took immediate cognizance of the matter. The case involves the embezzlement of ₹6.30 crore by the bank’s former branch manager, Ishtiaq Ahmed Parray, along with his driver and other associates.
Fraudulent Loan Sanctions and Embezzlement
The investigation began after the Central Bureau of Investigation (CBI) – Anti-Corruption Branch (ACB) registered four FIRs against Ishtiaq Ahmed Parray and others under various sections of the Ranbir Penal Code (RPC), 1989, and the Jammu & Kashmir Prevention of Corruption (PC) Act, 2006. Parray, while serving as the branch head at multiple locations of J&K Gramin Bank, sanctioned around 250 fraudulent loans, including Kisan Credit Cards, Joint Liability Group Loans, Vehicle Loans, and Cash Credit Limits.
There was no verification of whether the loan applicants were genuine, leading to ₹6.30 crore being fraudulently disbursed. Parray allegedly conspired with his driver, Mohd Maqbool Ghani, and others to divert these funds.
Misuse of Funds and Lavish Expenditures
According to the ED, a significant portion of the embezzled funds was used by Parray and his family members to acquire immovable properties, renovate ancestral homes, fund extravagant weddings for his daughters, and sustain a luxurious lifestyle.
ED’s Investigations and Seizures
On July 29, 2024, the ED conducted searches at multiple locations in Jammu and Kashmir linked to Parray and his associates. During these searches, several incriminating documents and digital records were seized. Following a detailed investigation, in October 2024, the ED attached immovable properties worth ₹3.40 crore belonging to Parray and his associates in Srinagar and nearby areas.
The ED’s prosecution complaint now formally charges Parray and 12 others in the money laundering case. The investigation is ongoing, and further action is expected.
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