ACB raid J&K bank headquarters in Srinagar

Official sources said that ACB is looking for records of nearly 12,00 appointments made allegedly at the behest of political masters of the previous PDP-BJP dispensation in the state.

On Saturday, the ACB raided the financial institution’s corporate headquarters here soon after Governor Administration removed chairman and Chief Executive Officer (CEO) of Jammu and Kashmir Bank (JKB) Pervez Ahmad.

An official spokesperson said that case FIR No 10/2019 was on Saturday registered in P/S Anti Corruption Bureau (ACB) Central Kashmir in Srinagar against officials/officers of J&K bank under section 5(1)(d) of Prevention of Corruption Act Samvat-2006 and punishable under section 5(2) of the Act and the investigation was taken up.

He said immediately after the FIR was registered, searches were conducted at the bank's headquarters on Saturday. 'During the operation, documents/discriminatory material pertaining to the appointments were seized,' the spokesman said.

Searches were again conducted in the bank headquarters on Sunday.

'Keeping in view the concerns expressed in various quarters regarding the governance and functioning of the Jammu and Kashmir Bank (JKB), the government on Saturday decided to take long term measures to improve the functioning of the Bank, so that it becomes a shining example of a well-managed Government-Owned Bank,' an official spokesperson said here.

As a first step, the government has decided to change its nominee Director on the Board of JK Bank, Parvez Ahmed, who is also the Chairman and Managing Director (MD).

He said the government has appointed R K Chibber, Executive President of JK Bank, as the government nominee on the Board, which subsequently approved his appointment as an Interim Chairman and MD of the Bank.

The government has also decided to constitute a Search Committee to identify a suitable panel of names for being appointed to the Board of Directors of JK Bank and subsequently, for consideration as Managing Director of the Bank.

The JK Bank has also been directed repeatedly by the Reserve Bank of India, to separate the positions of Chairman and Managing Director, for better governance.

The Government will be taking steps through the Board of the Bank for making necessary changes in its Article of Association/Bye-laws, with regard to posting of a separate Chairman and a Managing Director with adequate safeguards in the functioning of the Board, to ensure high levels of financial probity, financial control, better risk management and oversight.

The Board of Directors in its meeting, made necessary recommendation in this regard.

The Government is committed to taking necessary steps for making the Jammu and Kashmir Bank as one of the best performing banks in the country and accelerate economic growth in this state, he added.