The Crime Branch has arrested five people, including a former bank manager, in connection with a ₹5 crore loan scam at Jammu and Kashmir Bank. The case, which came to light in 2023, was reported by Mohammad Shakeel, Chief Manager of the Supervision and Control Division at the bank’s Jammu Zonal Office. Since then, an investigation has been ongoing.
How the Scam Was Executed
According to the complaint, Salim Yusuf, a contract employee with the Integrated Watershed Management Program, fraudulently reactivated dormant accounts in the Lasana Surankot branch of J&K Bank. These accounts, registered under the name Integrated Water Management Committee, were used to take loans worth ₹5 crore from multiple bank branches in Poonch district.
With the help of three other accused, Yusuf allegedly manipulated account details, forged salary certificates, and issued fake confirmation letters to secure the loans. The accused created fake government employees who then applied for personal and car loans. Fake government accounts were also opened at Mendhar and Mendhar Bus Stand branches, allowing the group to siphon off the money.
Crime Branch Arrests Five Accused
Following the investigation, the Crime Branch arrested five individuals:
- Jatinder Singh, former manager (Scale-2) of J&K Bank’s Rajouri branch, now demoted
- Mohammad Kabir, resident of Poonch
- Mohammad Zafir Khan, resident of Poonch
- Zafar Iqbal, resident of Poonch
- Mohammad Shakeel, resident of Rajouri
Method Used to Defraud the Bank
The accused deposited money in accounts under the Watershed Committee’s name at different bank branches. Using forged documents, they instructed the bank to release salaries for non-existent employees from these accounts. Later, they used fake salary certificates to apply for and obtain ₹5 crore in loans from various branches of J&K Bank.
Huge Financial Loss to the Bank
This fraudulent operation caused significant financial losses to J&K Bank. The Crime Branch is continuing its investigation to uncover any additional links in the scam.
