Ex-J&K Minister's Son 'Siphoned Off' Loan Money To Travel, Buy Illegal Assets: ED

Enforcement Directorate raided areas in Srinagar, Jammu, Delhi and Ludhiana

New Delhi:

The Enforcement Directorate (ED) on Friday claimed that Hilal Somewhat, son of former Jammu and Kashmir minister Abdul Rahim Somewhat, “siphoned off” cash loaned to his firm to splurge on overseas excursions and purchase private property in India, Dubai and the US.

The central probe company performed raids at 17 areas in Srinagar, Jammu, Delhi and Ludhiana on Thursday in reference to a cash laundering probe in opposition to Hilal Somewhat linked to an alleged Rs 177 crore mortgage fraud involving Jammu and Kashmir Financial institution.

“A number of incriminating paperwork and digital evidences have been seized in the course of the search operations,” the ED mentioned in a press release issued on Friday.

It mentioned raids had been carried out on the premises of Abdul Rahim Somewhat, former minister of finance, agriculture and rural growth of the erstwhile state of Jammu and Kashmir and a Nationwide Convention (NC) chief, in Srinagar and that of his son in Jammu.

“A considerable a part of the mortgage was siphoned off by Hilal Somewhat by transferring the funds from the mortgage account of Paradise Avenue (his firm) to numerous entities and re-routing the funds again to the agency’s present account from the place it was additional withdrawn and transferred for buy of movable and immovable property in India, Dubai and the US and likewise spent on overseas excursions and different private actions,” the ED alleged.

It added that three flats within the identify of Hilal Somewhat and relations had been “acquired in Dubai and one bungalow was acquired within the identify of Hilal Somewhat and his spouse in North Carolina, USA” by allegedly misusing the mortgage quantity.

The central probe company has filed a cash laundering case in opposition to Hilal Somewhat and others, underneath the Prevention of Cash Laundering Act (PMLA), taking cognisance of a case filed by the Jammu and Kashmir anti-corruption bureau in opposition to him.

The CBI and the Revenue Tax Division too are probing him on this case.

The ED mentioned its probe discovered {that a} mortgage of Rs 177.68 crore was sanctioned by J-Okay financial institution, with out verifying paperwork and in violation of tips of RBI, to Paradise Avenue for development of a residential housing venture in Jammu.

The CBI has alleged that Hilal Somewhat entered right into a prison conspiracy with the then officers of the Jammu and Kashmir Financial institution to get loans of about Rs 177.68 crore in alleged violation of guidelines and tips.

The I-T Division too had raided him in June final yr on fees of alleged tax evasion.

“In the course of the search, it was detected that the tax evader has been given unlawful good thing about Rs 60 crore by J&Okay Financial institution. His excellent mortgage of Rs 190 crore was settled at Rs 130 crore, though he didn’t deserve any concessional remedy,” the Central Board of Direct Taxes (CBDT) had then mentioned in a press release.

The CBDT is the policy-making physique for the I-T Division.

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