Hilal Rather taken in custody in a Bank Fraud Case of Paradise Avenue Township Project: Loan amounting to crores meant for construction activities siphoned off.

Hilal Rather was arrested by the Anti-Corruption Bureau (ACB) Jammu today in a case related to the alleged misappropriation of crores of rupees from the term loans running into 177 Crores sanctioned by Jammu and Kashmir Bankfor his ambitious township project known as Paradise Avenue at NarwalBala Jammu in the year 2012.

2. The investigation conducted by the Bureau has revealed that Paradise Avenue, a Partnership Concern of Hilal Rather, Dr Rizwan Raheem Dar of Sanant Nagar Srinagar, Ghulam Mohd Bhatt of Baramulla Kashmir, Daljeet Wadhera and Smt. Deepshikha Jamwal of Jammu was sanctioned a term loan of Rs 74.27 crores in the first phase and in relaxation to the credit policy of the bank which restricts loan to a partnership firm at Rs 40 crores and the loan was approved by the Board of Directors of the J&K Bank when Hilal Rather despite the fact that he had already entered into a OTS with the State Financial Corporation in the past. The remaining loan amount were granted by the Board despite the fact that the repayments of the first loan taken was not complete.

3. Hilal Rather, who also owns Simula Group of Companies, was being questioned for the last few months by the Bureauin connection with the siphoning off crores of rupees from the loan amount sanctioned by the New University Campus Branch of J&K Bank for the construction of Flats under the name of Paradise Avenue. He has been evading details of property raised & others transaction related to siphoning of funds meant for construction.

4. Hilal Rather has been taken into custody for further questioning. It has also been revealed that the funds diverted have been used to purchase huge properties in abroad, holidaying abroad with family and friends and also for other entertainment activities. All the loan amounts availed by Hilal Ahmed Rather to tune of Rs.177 crore have become NPA.

5. Further investigation is in progress.

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