Did the ED File a Prosecution Complaint in a ₹5.59 Crore Bank Fraud Case?
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Synopsis
The Enforcement Directorate has taken a significant step in tackling financial fraud by filing a prosecution complaint in a notorious ₹5.59 crore bank fraud case in Srinagar. Investigations reveal a complex web of deceit involving multiple accused and forged documents, raising serious concerns over banking practices in the region.
Key Takeaways
- ED's proactive measures in tackling bank fraud are crucial for financial integrity.
- Legal actions under the PMLA reflect the seriousness of financial crimes.
- Collusion among bank officials and borrowers poses significant challenges.
- The misuse of loans for personal gain undermines public trust.
- Ongoing investigations are vital for accountability and justice.
Srinagar, July 21 (NationPress) The Enforcement Directorate (ED) has lodged a prosecution complaint in accordance with the Money Laundering Act (PMLA), 2002, which has been acknowledged by the designated court in Jammu and Kashmir’s Srinagar.
According to an ED press release, "The ED Srinagar Zonal Office has submitted a Prosecution Complaint (PC) under the Prevention of Money Laundering Act (PMLA), 2002 to the Hon’ble Special Court (PMLA), Srinagar, against Mukti Nath Doley, former Branch Manager of Canara Bank, along with Irfan Manzoor Darzi, Shah Nawaz Shah of M/s SMC Tours and Travels, New Delhi, Md. Parwez Mughal of Raffal World, Srinagar, Md. Asaraf Dev of M/s Rafraf Tours and Travels, Budgam, Sayed Kaushar Niyazi of M/s Syed Tours and Travels, Srinagar, Rayees Manzoor Darzi of M/s Rayees Tour and Travels, Mudasir Nazir Wani of M/s Travel King, Irfan Rashid Khan of M/s JK Makkah Jewellers, Rajouri, Ishfaq Ahmad Zargar of M/s Nikha Ornaments, Srinagar, and Khalil Ahmad Mughal of M/s JK Gold Jewellery, Rajouri, concerning the Canara Bank Fraud in Jammu & Kashmir dated 18/07/2025."
The Special Court has acknowledged the Prosecution Complaint. The ED began its investigation following an FIR registered by the Maisuma Police Station, Srinagar (J&K) against the mentioned individuals and others for inflicting a loss of ₹5.59 Crore to Canara Bank, Budshah Chowk Branch, Srinagar (J&K).
During the investigation, it was revealed that in 2014, the aforementioned accused, alongside 26 other borrowers, acted in collusion with M N Doley, the previous Branch Manager of Canara Bank, to obtain cash credit loans totaling ₹30 Crore under fictitious proprietorship names.
This fraudulent activity involved the use of forged documents, enabling the accused to divert loan proceeds through various bank accounts linked to other entities and individuals.
The funds were ultimately misappropriated for personal gain, contravening the intended purpose of business financing. All loans sanctioned by M N Doley were in blatant violation of bank policies, eventually leading to them becoming Non-Performing Assets (NPAs) since 2016.
This resulted in significant financial losses (including loan amounts and accrued interest) to public funds managed by Canara Bank, Budshah Chowk, Srinagar (J&K). "The investigation also uncovered that substantial portions of these loan proceeds were shared by Mukti Nath Doley, Shahnawaz Shah, Irfan Manzoor Darzi, and other implicated individuals for their own benefits."
Previously, properties worth ₹4.81 Crore associated with Ishfaq Ahmad Zargar, Asaraf Dev, Sayed Kauser Niyazi, and Khalil Ahmad Mughal were attached in this case.
The ED has stated that further investigations are ongoing in this matter.
Point of View
It is imperative to recognize the Enforcement Directorate's persistent efforts in combating financial crimes. This case highlights systemic vulnerabilities within our banking institutions that must be addressed to safeguard public trust. The ongoing investigation underlines the need for enhanced vigilance and reform in financial governance.
NationPress
21/07/2025
Frequently Asked Questions
What is the amount involved in the bank fraud case?
The total amount involved in the bank fraud case is ₹5.59 crore.
Who are the main accused in the case?
The main accused include Mukti Nath Doley, former Branch Manager of Canara Bank, and several others linked to various travel businesses.
What laws are being invoked in this case?
The Enforcement Directorate has filed the prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002.
What actions have been taken against the accused?
Immovable properties worth ₹4.81 crore have been attached, and further investigations are ongoing.
When did the fraudulent activities occur?
The fraudulent activities occurred during the year 2014.
