J&K Bank irregularities: I-T raids Kashmir business group, seizes RS 1.28-cr assets

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The Income Tax Department said on Tuesday that it has conducted raids against a Kashmir-based business group and seized unaccounted assets worth Rs 1.28 crore in connection with its tax evasion probe against entities linked to the financial operations of J&K Bank.

Alleged irregularities in loan disbursal activities and appointments at the state-owned lender came to light recently after the Jammu and Kashmir Anti-corruption Bureau initiated action against it, its former Chairman Parvez Ahmad and others.

"In another such follow-up action, a search and seizure operation has been conducted on a group that is in the business of providing security to business establishments and prominent individuals as well as in running hotels in Jammu and Kashmir and other parts of the country," the CBDT said in a statement without identifying the group.

The action led to the seizure of unaccounted jewellery and undisclosed cash of more than Rs 1.28 crore from the promoter of the group, it said.

The Central Board of Direct Taxes (CBDT) frames policy for the I-T Department.

It said the group that was raided faces allegations of "defrauding public sector banks including J&K Bank in connivance with bank officials, having unexplained cash deposits in the group entities and large scale diversion of funds taken for development of an impugned medical college as well as hotels of the group for private gain of the promoters."
The statement said the raids revealed "apparent siphoning of loans of more than Rs 74 crore."