With the recovery of two hand-written diaries from Mehbooba Mufti’s confidante and a former nominated MLA of the Peoples Democratic Party (PDP), Anjum Fazili, the Enforcement Directorate (ED) is understood to have laid its hands on some ‘vital clues’ with regard to siphoning of money from the Jammu and Kashmir Chief Minister’s secret fund in the 2016-18 period.

According to the sources associated with the investigation three junior personnel from the ex-CM’s security detail, namely head constable Jamal-ud-din, Mohammad Tariq and Akash Khajuria, are being interrogated by a Central agency. They would be asked how huge amounts of money had mysteriously landed into their bank accounts before they transferred the same to the ex-CM’s family members. While Jamal-ud-din has been called to New Delhi, Khajuria has been removed from the Special Security Group (SSG).

During a series of raids in Srinagar and New Delhi on 23 December 2020, the ED is understood to have seized two hand-written diaries from Ms Fazili’s residence. These notebooks, according to sources, contain details about beneficiaries of the CM’s secret fund, reportedly Rs 1 crore a month. ED has claimed to have recovered unaccounted cash worth 28 lakh—Rs 21,38,200 in Srinagar and Rs 6,62,500 in Delhi—besides Fixed Deposit Receipts worth Rs 67,29,490 from the ex-legislator’s premises. Fazili has been interrogated but not taken into custody by the ED.

Mehbooba got her close confidante, politician-businesswoman Anjum Fazili, nominated as a member of the Jammu and Kashmir Legislative Assembly in 2015. Perceived to be equally close to the ex-CM, Waheedur Rehman Para was appointed as President of PDP’s youth wing and later as Secretary J&K State Sports Council. He has been already arrested and booked by the National Investigation Agency (NIA) for allegedly acting as the ruling establishment’s conduit with Hizbul Mujahideen, Lashkar-e-Tayyiba and the Geelani faction of Hurriyat Conference.

Among Mehbooba’s confidantes and close relatives, former Minister Naeem Akhtar and former Deputy Speaker of Assembly Mohammad Sartaj Madni have been under fresh detention in the MLAs Hostel in Srinagar for the last over three months now. Sources say they, along with some prominent hoteliers and businesspersons, have been intermittently questioned about their alleged role in laundering of government funds.

According to the NIA’s chargesheet, Para has allegedly passed on cash worth Rs 5 crore to Hurriyat (Geelani) through the separatist hardliner Syed Ali Shah Geelani’s son-in-law Altaf Ahmad Shah alias Fantoosh in 2016. He has been also charged with sending cash worth Rs 10 lakh each to two top commanders of Hizbul Mujahideen and Lashkar-e-Tayyiba.

Mehbooba as well as the PDP has dismissed all these charges as baseless and a “witch hunting”, aimed at defaming the ex-CM, her party, family and political colleagues.

During the course of her first interrogation by the ED in Srinagar on 22 March, Mehbooba has been reportedly shown copies of pages from a diary which lists alleged monthly payments made out of the CM’s discretionary funds to several individuals including her relatives; as payment for PDP’s activities and to meet “personal expenses”.

After a scrutiny of 23 bank accounts and questioning and searching several key persons, the agency has made out a case of alleged ‘’diversion” of between Rs 7-8 crore from the Government fund for “personal and political purposes.” A scrutiny of the entries, officials said, shows monthly outflows to the ex-CM herself as well as payment to destitute homes.

For May-June and November 2017, there are reportedly payments listed towards organizing a wazwan in Delhi; the purchase of a humidifier; payments on account of stitching charges of apparels, cable TV costs, memberships of two golf clubs in Srinagar and Jammu for certain political persons including two ex-Ministers, besides payments made to cable operators and dairies. Payment for June 2016 was reportedly Rs 59.64 lakh and for October 2016 Rs 53.35 lakh.

The ED has categorized alleged payments as per their end use: organizing PDP rallies; providing vehicles for PDP workers and purchase of air tickets for ex-CM’s family members.

Details of the investigation reportedly show cash deposits to the tune of Rs 60 lakh for the period 2016-2018 into the accounts of Mehbooba mother, Gulshan Nazir, as well as deposits into the accounts of her daughter, sister and brother. All these family members are expected to be questioned by the ED.

Along with this, there are allegations of cash from “undisclosed sources” being deposited into the accounts of members of Mehbooba Mufti’s security detail and the money being, subsequently, moved into the account of her mother.

Similar circuitous transactions are being probed between a Srinagar-based hotelier who would allegedly get cash deposited into his accounts which was then transferred into accounts of the then CM’s family members. A prominent contractor has reportedly deposited Rs 35 lakh into the account of a member of the former ruling family. According to officials, almost all those questioned in the case so far have admitted to the cash deposits.