?SRINAGAR : A powerful civil society group in Jammu and Kashmir, the J&K Peace Forum (JKPF) has leveled explosive allegations of what it calls the “biggest banking fraud” in the region’s history. The Forum claims that officials at J&K Bank sanctioned loans worth vast sums by accepting mere rent agreements on properties—including temple lands and religious endowments—as collateral. Calling the operation an “organized loot of public money,” the JKPF has formally demanded an immediate, high-level investigation led by the Reserve Bank of India (RBI) and the Union Finance Ministry.
The Anatomy of the Alleged Fraud
The core of the scandal, according to the JKPF’s allegations, centers on a brazen manipulation of lending practices. The Forum claims that standard due diligence and mandatory safeguards were systematically bypassed to approve loans against documents that hold no valid standing as traditional collateral. Specifically, bank employees are accused of accepting rent agreements, signed by tenants occupying public lands, including those legally designated as religious properties or temple lands. These agreements were allegedly used to secure large loans, transforming properties meant for communal and religious purposes into instruments for private financial gain, severely compromising the security of the bank’s assets and the public’s funds.
Allegations of Insider-Driven Criminal Nexus
The scope of the alleged fraud suggests a deeply entrenched, coordinated effort, far exceeding simple negligence. JKPF Chairman Satish Mahaldar has stated, “This is not banking negligence—it is an organized loot of public money.” The Forum alleges that the scheme was facilitated by a powerful nexus between corrupt J&K Bank insiders and officials within the State Revenue Department. Sensitive records pertaining to the ownership of temple and community lands were reportedly leaked by these revenue insiders, allowing the fraudsters to identify and misuse properties for the fraudulent loans. The Forum claims this points to a sophisticated criminal racket operating within and across key government and financial institutions.
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Demand for State Intervention and Criminal Action
In response to the alleged exposure, the J&K Peace Forum is demanding swift and decisive action from the central government and state regulators. The group has called for an immediate high-level probe into the fraudulent sanctions, arguing that only the RBI and the Union Finance Ministry possess the authority to conduct an independent and thorough investigation. Beyond merely recovering funds, the JKPF insists on the public naming and shaming of all banking and revenue officers involved. Furthermore, they are calling for the criminal prosecution of the entire network of beneficiaries, officials, and bankers who allegedly participated in the scheme.
Threat to Public Trust and Systemic Collapse
The implications of the scandal, the Forum warns, extend far beyond financial loss. The use of religious and community property as collateral is seen as an “assault on religious sanctity,” and the failure of internal checks and balances represents a “collapse of regulatory oversight.” The JKPF has stressed that if such massive and systemic fraud is allowed to go unpunished, the public’s trust in India’s banking system will be severely damaged, and sacred institutions will be left vulnerable to exploitation. The Forum has framed the situation as a defining test for the RBI and the Finance Ministry to uphold the integrity and credibility of the nation’s financial framework.
