SRINAGAR: After a seven-year investigation into alleged fraud and corruption in a power division in north Kashmir, investigators say they have traced a web of illegal appointments, bank collusion and the diversion of public funds, culminating this week in a chargesheet against more than a hundred accused.
A Long Investigation Reaches the Courts
The Economic Offences Wing of the Crime Branch Srinagar has filed a chargesheet against 108 people in what officials describe as a “mega corruption racket” linked to the Electric Division, Sumbal, in north Kashmir.
The chargesheet, submitted before the Court of the Special Judge, Anti-Corruption, Baramulla, relates to FIR No. 25/2018 and invokes multiple provisions of the Ranbir Penal Code, including those dealing with criminal breach of trust, cheating, forgery and conspiracy, read with the Prevention of Corruption Act. Officials said the case centers on the alleged embezzlement of government funds and the facilitation of illegal appointments over several years. The filing follows the granting of prosecution sanction by the government, clearing the way for judicial adjudication.
Alleged Kingpin and the Trail of Money
Investigators have identified Mushtaq Ahmad Malik, described as a key conspirator, as central to the alleged scheme. According to officials, crores of rupees were recovered from Malik during the investigation and deposited into the government treasury.
The inquiry further found that substantial sums had been transferred into multiple bank accounts linked to the accused, including savings accounts and term deposits, along with accrued interest. Officials said the movement of funds reflected a pattern consistent with systematic diversion rather than isolated misconduct.
The money trail, investigators contend, was crucial in establishing how public funds were allegedly siphoned off and parked across accounts to avoid detection.
Officials, Bank Staff and Fake Appointments
According to a statement by the Crime Branch, the list of accused includes 15 executive engineers, six assistant accounts officers, one accounts assistant, six head assistants, four senior assistants, four junior assistants and one orderly, all of whom were posted in the Electric Division, Sumbal, at various times.
The chargesheet also names 25 officers and officials of J&K Bank, Branch Sumbal Sonawari, as well as 46 individuals described as “fake employees” who were allegedly appointed illegally. Investigators allege that these appointments were facilitated through forged or manipulated records, enabling salaries and other benefits to be drawn fraudulently from government accounts.
How the Scheme Allegedly Operated
Officials said the case was registered after “credible information” indicated that the Drawing and Disbursing Officer, acting in connivance with other departmental officials and bank staff, had fraudulently withdrawn large sums from government accounts.
The investigation, they said, established large-scale diversion of funds and a coordinated effort to sustain the alleged scheme over time, involving both administrative manipulation and banking channels.
