SRINAGAR: The Jammu and Kashmir and Ladakh High Court has granted bail to Muhammad Shafi Dar, the former Chairman of the Jammu and Kashmir State Cooperative Bank, who was arrested by the Enforcement Directorate (ED) in connection with an alleged Rs 233 crore money laundering scam.
Dar had been in judicial custody since November 30, 2023, under Section 19 of the Prevention of Money Laundering Act, 2002. His bail petition was approved by Justice Rahul Bharti, who noted that Dar, as chairman, wasn’t the sole decision-maker regarding a loan of Rs 250 crores to the River Jhelum Cooperative House Building Society for a township project in Shivpora, Srinagar.
The court recognised that the loan sanction wasn’t solely Dar’s decision but involved the collective decision of the Board of Management. It was observed that Dar lacked veto authority, and the decision-making process included participation from the entire Board. Justice Bharti questioned the fairness of individualising liability to Dar, considering the complex dynamics within the Board.
Despite the seriousness of the accusations, the court also considered Dar’s health condition, as he’s 63 years old and reportedly suffers from heart-related complications.
As part of the bail conditions, Dar has to furnish a personal bond of ten lakh rupees and two sureties, stay within Srinagar’s jurisdiction unless permitted otherwise, refrain from interfering with the investigation, and appear when summoned.
Justice Bharti also recognized the complexity of the decision-making dynamics within the Board and questioned whether it was fair to individualize the liability solely to the petitioner. “The petitioner is well within his right to say and agitate that so long as the decision to grant loan on behalf of the J&K State Cooperative Bank, Kashmir, Srinagar is to be reckoned as having been taken by the Board of Management then the liability and the responsibility for the said decision cannot be indivito the petitioner alone and absolving the rest of the board members”, the court remarked.While acknowledging the seriousness of the accusations, the court also considered the petitioner’s health condition, emphasizing the need for medical attention, especially given his age. The petitioner, aged 63, reportedly suffers from heart-related complications.
The court granted conditional bail to the petitioner of furnishing a personal bond of ten lacs rupees and two sureties, staying within Srinagar’s jurisdiction unless permitted otherwise, refraining from interfering with the investigation, and appearing when summoned.
The Enforcement Directorate had opposed Dar’s bail, arguing that he sanctioned the loan without proper documentation, KYC norms, or tangible security, thereby laundering the proceeds of crime. However, the court’s decision to grant bail was based on recognising the collective responsibility of the Board in decision-making and considering Dar’s health condition.
