The Anti- Corruption Bureau (ACB) has registered a case under the Prevention of Corruption Act against the J&K Bank for having allegedly made “illegal and fraudulent” appointments in the bank.

On the other hand, the state government has announced that long term measures will be taken to streamline the functioning of the bank.

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The ACB said that a written complaint was received against such appointments and since the allegations reflected in the complaint disclosed commission of criminal misconduct by Officers/officials of J&K Bank which constitute offence under section 5(1)(d) of Prevention of Corruption Act Samvat-2006 and punishable under section 5(2) of the Act, Case FIR No. 10/2019 was registered at P/S Anti Corruption Bureau Central Kashmir Srinagar and investigation of the case was taken up.

Immediately after the registration of FIR, searches of premises of Corporate Office J&K Bank Head Quarters and during search operations documents pertaining to the appointments were seized.

Further investigation is going on.

Meanwhile, the sacked chairman cum managing director of the bank, Pervez Ahmad tweeted after the ACB raids; “Absolutely no regrets. Did my job most diligently, honestly and in the best interest of the institution. Open to scrutiny on each and every transaction I have done during my two decades of functioning in the bank”.

Absolutely no regrets.Did my job most diligently, honestly and in the best interest of the institution. Open to scrutiny on each and every transaction I have done during my two decades of functioning in the bank .

— Parvez Ahmed (@ParvezAhmed112) June 8, 2019

Having appointed RK Chibber as interim chairman of the J&K Bank on Sunday morning, the government has 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 board of directors on Saturday recommended the appointment of separate chairman and a managing director of the bank. Both these posts were so far vested in a single officer.

A spokesman of the state government said on Saturday evening that the J&K Bank has also been repeatedly directed by the Reserve Bank of India (RBI) 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 and 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 has made the necessary recommendation in this regard.

Keeping in view the concerns expressed in various quarters regarding the governance and functioning of the Jammu and Kashmir Bank, the Government has 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.

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