Jammu and Kashmir: Former finance minister's son held in Rs 177 crore bank scam

Tightening noose around the corrupt politicians in Jammu and Kashmir, Anti-Corruption Bureau (ACB) on Thursday arrested the son of former finance minister and senior National Conference leader Abdul Rahim Rather in an alleged multi-million bank scam.

An official of the ACB said Hilal Rather was arrested in Rs 177 crore scam involving Jammu and Kashmir Bank for his ambitious township project ‘Paradise Avenue’ at Narwal Bala on the outskirts of Jammu City.

The alleged scam had taken place in 2012 when senior Rather was the finance minister in Omar Abdullah-led National Conference-Congress coalition government.

"In relaxation to the credit policy of the bank which restricts loan to a partnership firm at Rs 40 crores, the loan was approved by the Board of Directors of the J&K Bank when Hilal despite the fact that he had already entered into a one-term-settlement (OTS) with the State Financial Corporation in the past,” the official said.

The remaining loan amount was granted by the Bank despite the fact that the repayments of the first loan taken, was not complete. “Hilal was evading details of property raised and other transactions related to siphoning of funds meant for construction,” he added.

During the investigations, the ACB has found that the bank loan was diverted by the accused to purchase huge properties abroad, including an eight-bedroom villa on a Dubai island where celebrities like actor Shah Rukh Khan and footballer David Beckham own properties.

The loan amounts availed by Hilal to tune of Rs 177 crore have become Non-Performing Assets (NPA). He has also been accused of financial malpractice by the income tax department, which raided several properties owned by him and his partners across Jammu and the Valley in June last year.

Besides the construction business, Hilal is known to have stakes in real estate, power, telecom and various other sectors.

Earlier on December 27, the ACB arrested former deputy mayor of Srinagar Municipal Corporation Sheikh Imran in a case pertaining to alleged misappropriation of crores of rupees from the J&K Bank.