Anti CorruptionBureau, J&K registered two cases vide FIR No. 15/2019 u/s 5(1)(d) read withsection 5(2) J&K P.C Act Svt. 2006, 120-B RPC at P/S ACB (CK) and  FIR No. 16/2019 u/s 5(1)(d) read with section5(2) J&K P.C Act Svt. 2006, 120-B RPC at P/S ACB (CK)  against officials of the J&K bankalongwith the illegal beneficiaries involved in financial irregularities/loanfraud worth 600 crores of rupees and also conducted searches at residentialpremises and office of Raj Singh Gehlot, Managing Director Ambience Group atNew Delhi. Separate verifications were conducted by ACB on account of theallegations of financial irregularities, wherein it was revealed that variousloan facilities were extended to proprietors/ Promoter Directors of firmsnamely M/S Aman Hospitality Pvt. Ltd and M/S Ambience Towers Pvt Ltd (bothfirms owned by Raj Singh Gehlot, Managing Director Ambience Group ) during theperiod 2009 to 2016 in contravention to the laid down norms and procedures ofthe Bank. During verifications, it came to fore that management at thecorporate headquarters/ Zonal Office Delhi and other  officials of J&KBank Branch Ansal Plaza have given loan worth crores of rupees to one firmnamely M/S Aman Hospitality Pvt. Ltd. and in connivance with the said firm, theloan amount has been declared NPA to facilitate it to have one time settlement(OTS) to firm’s advantage. New Delhi based M/S Aman Hospitality Pvt. Ltd. hassubmitted a “feasibility study and development strategy reports for theproject” for setting up a Twin Five Star Hotel Project in various banksincluding J&K Bank through its Branch i.e. B.U. Ansal Plaza New Delhi andcost of project was estimated as Rs.866.89 crores with further revised cost ofthe project amounting to Rs.1275.71 crores. Out of the total project,  M/S Aman Hospitality Pvt. Ltd. obtained aterm loan amounting to Rs.227.00 crores(disbursed from year 2009 to 2013)  besides Rs.15.00 crore as bank guaranteelimit from J&K Bank Ltd Branch Ansal Plaza New Delhi whereas rest of theloan was availed by the firm from other banks. Since the company turned willful defaulter as it failed to repay theloan amount on regular intervals, the J&K Bank sanctioned a funded interestterm loan amount of Rs.47.21 crore in year 2014 in favour of company. Since thecompany again failed to pay the loan amount, resultantly the J&K BankAuthorities declared the loan account of the firm as NPA on 30.06.2018 and atthis stage total outstanding of J&K Bank against the company was Rs.261.47crores as Principal amount and at the same time interest component Rs.27.81 asunapplied interest till 30.04.2019 and thus total outstanding with the companywas pegged at Rs.289.28 crore, however surprisingly J&K Bank illegally andwith malafide intentions settled loan amount for an amount of Rs.128.94 croresonly against the total outstanding amount of Rs.289.28 crore through OTSmechanism without taking recourse to SARFAESI Act in connivance with Raj SinghGehlot, Dayanand Singh and Aman Gehlot, Promoter Directors of M/S Aman HospitalityPvt. Ltd. Due to connivance dspite illegal OTS the authorities failed torecover a single penny from the company till date and OTS has turned a mere eyewash and thus caused a monetary loss of Rs. 289.28 Crore to Bank.  Since the facts and the circumstances whichhave emerged during verification vis-a-vis scrutiny of records of the bankdisclose commission of criminal misconduct by bank officials of J&K bankand the Promoter Directors of the beneficiary company and others, case FIRNo.15/2019 is registered in P/S ACB (CK).

Moreover, another verification conducted by theAnti-Corruption Bureau, Rajouri  revealthat initially Term Loan of Rs. 258.00Cr was sanctioned by J&K Bank BUAnsal Plaza Delhi during year 2015 in favour of M/S Ambience Towers Pvt Ltdagainst future leasing/rental receipts at shopping cum office complex at plotno. 2B2, twin District Sector-10, Rohini Delhi. In order to confer more unduebenefit upon the company, the concerned officials of J&K Bank in connivancewith the beneficiary firm subsequently modified the first loan sanction andincreased the loan amount to Rs. 300.00 Cr in year 2016 which was disbursed infull during the same year. The same was calculated by J&K Bank againstdiscounted value of rentals i.e, Lease agreement related to rentals of the firmwas to be executed with three parties viz., M/S Future Group (Big Bazar), M/SHDFC Bank and M/S Sindhu Trade links. Apart from other formalities, the BU JKbank Ansal Plaza had to obtain and rely on registered lease deeds executedbetween the borrower company and the three parties mentioned above. On scrutinyof bank documents, it has come to fore that the beneficiary company’s proposalfor loan was recommended against (i) unregistered lease deeds with M/S Futuregroup(Big Bazar) reflecting lease rent (future income) @ Rs. 103.00 per sq ftper month. (ii) a letter of intent of HDFC Bank with lease rent (future income)@ Rs. 45.59 per sq ft per month and (iii) unregistered lease deed with M/SSindhu Trade Links with lease rent (future income)  @ Rs. 92.00 per sq ft per month to M/SAmbience Towers. There was a prerequisite condition from the bank that beforedisbursement of loan amount to the company, the BU JK Bank Ansal Plaza NewDelhi had to obtain registered lease deeds but the Bank at the time ofdisbursement of loan amount did not obtain either of the registered lease deedsdeliberately and with malafide intentions and resultantly on 29-06-2016 companyfurnished registered lease deed in respect of HDFC Bank with rent @ Rs. 45.59per sq ft per month, whereas no registered lease deeds in respect of FutureGroup and Sindhu Trade links were furnished by the company to the bank till2018 and the beneficiary company in connivance with the officials of J&KBank furnished registered lease deed in respect of only Future Group in 2018with the rent rate @ Rs. 57.20 per sq ft per month which is about half of therent @ Rs 103.00 per sq ft per month mentioned in the unregistered lease deedon the basis of which Rs.300.00Cr loan had been sanctioned, however M/S SindhuTrade Links never occupied the space nor did they pay any rent. The lease deedwith M/S Sindhu Trade Links was terminated later on and the space was allottedto HDFC Bank on the rates already mentioned in their lease deed which is alsoabout half of the rent mentioned in the unregistered lease deed of M/S SindhuTrade Links and this clearly proves the nexus between the beneficiary companyand the officials of J&K Bank who have conferred undue benefit upon thebeneficiary company. Verification has further revealed that on the basis ofregistered lease deeds of Future Group and HDFC Bank, the company was entitledto obtain maximum of Rs. 195.89Cr instead of Rs. 300.00Cr sanctioned by theofficials of J&K Bank in connivance with Raj Singh Gehlot, Shekhar Singh& Sumit Chaudhary  Promoter Directorsof Ambience Towers Pvt Ltd. In this way it is established that the managementof J&K Bank at Corporate HQ  Srinagaras well as  officials of J&K BankZonal office New Delhi and BU Ansal Plaza New Delhi by abuse of their authorityfor pecuniary considerations under a well knit conspiracy hatched with RajSingh Gehlot, Shekhar Singh & Sumit Chaudhary Promoter Directors ofAmbience Towers Pvt Ltd, sanctioned and disbursed loan on higher side to thetune of Rs. 300.00cr in excess to its entitlement of Rs. 195.89Cr in favour ofM/S Ambience Towers Pvt Ltd. The officials J&K Bank in connivance withPromoter Directors of M/S Ambience Towers Pvt Ltd deliberately and dishonestlydelayed to obtain registered lease deeds in respect of other two firms i.e. M/SFuture Group and M/S Sindhu Trade Links as per quoted rates of rent whichresulted in conferment of pecuniary advantage upon the company which was notdeserving to obtain such huge loan amount on the basis of half baked loandocuments/unsecured mortgage property. Since the facts and the circumstances which have emerged duringverification visa-vis scrutiny of records of the bank disclose commission ofcriminal misconduct by bank management at Corporate HQ Srinagar/officials thenposted at Zonal Office Delhi/BU Ansal Plaza Delhi and Raj Singh Gehlot, ShekharSingh and Sumit Chaudhary Promoter Directors of the beneficiary firm M/SAmbience Towers Pvt. Ltd. and others, another case FIR No.16/2019 is registeredin P/S ACB (CK)

 Duringinvestigations, teams of ACB J&K conducted extensive searches at theresidence and office of Raj Singh Gehlot, Managing Director Ambience Group atNew Delhi with due procedure. During the searches various incriminating documents/electronic evidences were recovered and seized by the team. Furtherinvestigations are going on.