J&K Police Bust Multi-Crore Loan Scam, Arrest Key Accused

The Jammu and Kashmir Police arrested five individuals, including a former bank manager, over a multi-crore loan scam. The accused allegedly manipulated inactive accounts to obtain fraudulent loans, resulting in a significant financial loss for the Jammu and Kashmir Bank.

The Crime Branch of the Jammu and Kashmir Police has taken decisive action against a major financial fraud by arresting five individuals, one of whom is a former manager at the Jammu and Kashmir Bank. The arrests are linked to a multi-crore rupee loan scam that has rocked the state's banking sector.

The case originated in 2023 following a complaint filed by Mohammad Shakeel, the chief manager of the bank's Jammu zonal office. Shakeel alleged that Saleem Yousuf Bhatti, a contractual employee of the Integrated Watershed Management Programme, along with others, exploited dormant accounts at the Lassana branch to orchestrate the fraud.

The perpetrators allegedly altered account details and issued fake credentials to obtain loans under false pretenses. The investigation revealed the opening of fictitious government accounts, with fraudulent activities spanning various branches, resulting in an estimated Rs 5 crore loss for the bank.

(With inputs from agencies.)