Srinagar, November 9: The Enforcement Directorate (ED) has attached 11 properties worth ₹10.63 crore in Srinagar and Bandipora districts of Jammu and Kashmir in connection with an alleged fraud involving loans sanctioned under a Central government employment generation scheme.
The ED property attachment action was taken by the agency’s Srinagar Zonal Office under the Prevention of Money Laundering Act (PMLA). The properties include buildings and plots allegedly linked to suppliers-cum-brokers and officials of Jammu and Kashmir Bank suspected of involvement in the misuse of the Prime Minister’s Employment Generation Programme (PMEGP).
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According to an official statement, the investigation began after the agency examined two FIRs registered by the Anti-Corruption Bureau (ACB) and the Central Bureau of Investigation (CBI), Srinagar. The cases alleged that loans under PMEGP were misappropriated through a criminal conspiracy involving borrowers, bank officials and private individuals.
The FIRs alleged that the accused cheated the bank, diverted loan funds and caused financial losses to the institution while securing wrongful gains for themselves.
How the Alleged PMEGP Loan Fraud Was Carried Out
The ED investigation reportedly found that loans were obtained using dummy borrowers and forged invoices issued in the names of non-existent firms and companies. Private individuals acting as suppliers-cum-brokers allegedly worked with officials at the Sumbal and Gamud Gadkhud branches of J&K Bank to facilitate the loan approvals.
The CBI’s Anti-Corruption Bureau also registered a fresh FIR in the case in June 2026.
During its investigation under the PMLA, the ED conducted surveys at the two bank branches under Section 16 of the Act. The exercise reportedly identified 270 term loan accounts and an equal number of working capital accounts linked to the PMEGP scheme that had turned into non-performing assets (NPAs).
The total outstanding NPA amount across these accounts was estimated at approximately ₹32 crore, the agency said.
ED Traces Proceeds of Crime Worth ₹11.37 Crore
The agency further stated that money allegedly generated through the scheduled offences was transferred through multiple bank accounts. A portion of the funds was reportedly used to construct or renovate properties, including assets held in the names of family members, while other amounts were allegedly diverted for personal enrichment.
According to the ED, its investigation identified Hilal Ahmad Wani and others as key alleged participants in securing PMEGP loans through fraudulent means.
The agency said borrowers were allegedly persuaded to apply for loans using their KYC documents and other papers, while fake invoices from non-existent firms registered in the names of suppliers-cum-brokers and their family members were used to support the applications.
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So far, investigators have traced alleged proceeds of crime amounting to ₹11.37 crore, the ED statement said. The agency added that the money was routed through several accounts, with part of it invested in properties and a substantial portion allegedly siphoned off.
The ED has provisionally attached 11 properties held or controlled by suppliers-cum-brokers and a bank officer under Section 5(1) of the PMLA. The action is intended to safeguard assets believed to be linked to the alleged proceeds of crime while the investigation continues.
–IANS
