Tuesday, 02 January 2024 12:17 GMT

1503 'Ghost Traders': Fake Lists, Bogus Traders & DC Office Under CBI Lens


(MENAFN- Kashmir Observer) Srinagar – The Central Bureau of Investigation (CBI) has registered a case against officials of the Deputy Commissioner's Office Srinagar, Revenue officials, and private brokers for their alleged involvement in a multi-crore flood relief scam dating back to 2014.

According to officials, the CBI's Anti-Corruption Branch in Srinagar initiated a formal investigation after credible information revealed large-scale misappropriation of post-flood financial assistance meant for non-insured shopkeepers with turnovers below ₹10 lakh.

Following a Joint Surprise Check (JSC) at the DC Office's Accounts Section on March 6, 2025, and subsequent formal verification, the CBI found that officials had manipulated lists of beneficiaries. The scam involved depositing unspent flood relief funds into the Additional Treasury Tankipora under inconsistent figures ranging from ₹31.54 crore to ₹42 crore.

Fake Lists, Fictitious Associations

As per the CBI findings, two non-existent organizations - Al-Falah Shopkeepers Association and Flood Affected Coordination Committee Srinagar - submitted fabricated lists in 2018 to the Tehsil Office Central Shalteng. The lists, bearing names of 1,503 purported flood-affected shopkeepers, were submitted without the required affidavits or verification, blatantly violating official guidelines.

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“The majority of names in the list were found to be from a single household,” an official source said, confirming that both the associations were fictitious.

Legal Route Used to Push Fake Claims

In an attempt to legitimize the fraud, 401 shopkeepers from North Srinagar filed a writ petition in the J&K High Court in 2021. The court, citing an earlier order, directed authorities to consider their claims. Citing this order, 24 individuals from the 1,503 fictitious beneficiaries also approached the court in 2022, followed by 1,479 more in 2024, filing separate petitions.

The court directed the government to consider their claims“provided they are eligible.” These orders were then used by the accused officials to secure revalidation and release of ₹13.79 crore from the Finance Department, along with an additional ₹12 lakh for the 24 petitioners.

Shopkeepers, Brokers & Officials Collude

Although the 1,503 individuals physically exist and maintain active bank accounts, they were found to have knowingly shared their credentials with brokers and officials to falsely claim flood relief benefits.

“The shopkeepers were not entitled to any such relief, yet became part of the conspiracy by providing their details for financial gain,” the CBI noted.

The investigation further revealed that the accused officers submitted fake verification reports to various top-level government offices to ensure the release of funds.

Advocate Implicated

The scam also involved Advocate Zahoor Ahmad Bhat, who represented the 24 petitioners. Verification revealed that eight of his close family members were among the alleged beneficiaries.

Charges & Sections Invoked

The CBI has booked the accused under multiple sections of the Ranbir Penal Code, J&K Prevention of Corruption Act, and the Prevention of Corruption Act, 1988 as amended under the J&K Reorganisation Act 2019. These include Section 420 (cheating), 120-B (criminal conspiracy), and other provisions related to criminal misconduct by public servants.

The fraudulent scheme resulted in a misappropriation of ₹7.51 crore, with funds credited directly into the bank accounts of ineligible beneficiaries.

The CBI has launched a full-scale probe to identify the entire modus operandi and network of conspirators, including the officials, brokers, and pseudo-beneficiaries involved in this elaborate scam.

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