April 2021 News

Former J&K Bank Chairman Arrested In Connection With Illegal Allotment Of Tender Case

3 April 2021
India Today


Srinagar: The Anti Corruption Bureau (ACB) on Saturday arrested Parvez Ahmad Nengro, former Jammu and Kashmir Bank Chairman and Managing Director (CMD), in connection with the illegal allotment of tenders for housekeeping that led to a loss of crores of rupees to the bank. The ACB had registered a case in October last year against a private firm and three former bank officials including Nengroo for allegedly causing a Rs 6.92-crore loss to the bank by not following tendering rules. 'Nengroo has been arrested in connection with the investigation of a case that pertains to illegal allotment of tenders by Jammu and Kashmir Bank regarding housekeeping, to a Mumbai based Company (M-S SILA Solutions Pvt. Ltd) by not following proper tendering norms as provided in the contract,' the ACB said in a statement. The statement further said due to not following the proper tendering processes, improper ATM cleaning, undue addition of the Management Fee and other omissions and commissions detected during the investigation, the J&K Bank suffered losses worth crores of rupees from the date of award of the contract. Besides Nengroo, the ACB has named Sahil Vora and Rishabh Vora, directors, SILA Solutions Pvt Ltd, Surjeet Singh Seghal, the then executive president of J&K Bank (now retired) and Feroz Ahmad, the then assistant vice-president, in the tendering fraud, news agency PTI reported. In December 2019, the ACB had filed a chargesheet against Nengroo and 22 others in another case related to illegal appointments in the bank. The accused also included another former bank chairman, Sheikh Mushtaq, the report said. advertisement Nengroo removed from the post in June 2019, five months before the end of his term. The government ordered Nengroo's dismissal and replaced him with an interim chairman RK Chibber who was executive president of the financial institution, PTI reported. Chibber got the seventh extension for six months on March 31, making him the longest-serving chief executive. The government, which owns a majority stake in the bank, has said the decision to remove Ahmad was part of long-term measures for improving the functioning of the bank in accordance with RBI guidelines. 'Keeping in view the concerns expressed in various quarters regarding the governance and functioning of the bank, the government has decided to take long term measures to improve its functioning so that it becomes a shining example of a well managed government-owned bank,' PTI quoted an official spokesman as saying earlier.