The Enforcement Directorate (ED) on Thursday conducted searches at six locations related to the Jammu and Kashmir Bank (J&K Bank) in connection with a Rs 250 crore money laundering case.
“The Enforcement Directorate conducts searches at six locations related to the Jammu and Kashmir Bank in connection with a Rs 250 crore money laundering case,” said a statement released by the ED.
The ED raided the premises of the former J&K Bank chairperson, as well as the homes and offices of other bank officials. The raids were conducted in Srinagar, Jammu, and Delhi.
The ED is investigating allegations that the bank officials colluded with others to siphon off money from the bank. The bank is also suspected of laundering money through the sale of fake housing society shares.
The J&K Bank has been embroiled in a number of controversies in recent years. In 2020, the bank was fined Rs 2 crore by the Reserve Bank of India (RBI) for violating anti-money laundering (AML) regulations.
The ED is a central agency that is responsible for enforcing the Prevention of Money Laundering Act (PMLA). The PMLA is a law that was enacted in 2002 to combat money laundering in India.
The ED’s raids on J&K Bank are the latest in a series of actions that the agency has taken against banks and other financial institutions in India. In recent years, the ED has raided a number of banks, including the Punjab National Bank, the Syndicate Bank, and the Indian Overseas Bank.
The ED’s raids on J&K Bank are a sign that the Indian government is serious about tackling money laundering in the country. The raids are also likely to have a significant impact on the J&K Bank’s reputation.