Srinagar: The ED attached 11 properties, including buildings and plots, worth Rs 10.63 crore in Srinagar and Bandipora districts of Kashmir in connection with a case of alleged wrongdoings in a Central-government funded employment generation programme, an official said on Monday.
The Directorate of Enforcement (ED), Srinagar Zonal Office, has provisionally attached immovable properties under the Prevention of Money Laundering Act (PMLA) in the case linked to the misuse of the Prime Minister Employment Generation Programme (PMEGP), the official said in the statement.
The assets attached by the ED were in the possession of suppliers-cum-brokers and officials of J&K Bank allegedly involved in misusing PMEGP, a central-sector credit-linked subsidy scheme, said the statement.
The ED investigation was initiated on the basis of two FIRs of ACB, CBI, Srinagar alleging misappropriation of PMEGP Scheme’s loans in criminal conspiracy with borrowers, bank officials of Sumbal Branch and Gamud Gadkhud Branch of J&K Bank and other unknown persons,
The FIRs said the accused cheated the bank and misappropriated funds and caused wrongful loss to the bank and corresponding wrongful gain to themselves, said the statement.
Investigation revealed PMEGP loans were availed by projecting dummy borrowers, using fake invoices of non-exist firm/companies and in criminal conspiracy with bank officials, branches Sumbal and Gamud Gadkhud of J&K Bank by private persons-cum-brokers. The CBI, ACB also registered a fresh FIR in the matter in June 2026.
During investigation under PMLA, a survey conducted at the Sumbal and Gamud Gadkhud Branches of J&K Bank, under section 16 of the PMLA, revealed 270 term loan accounts along with 270 working capital accounts pertaining to the two branches of the bank in respect of the PMEGP scheme had turned NPA. The NPA amount was found to be about Rs 32 crore, the statement said.
The suspected proceeds derived from the scheduled offences were diverted through bank accounts in multiple transactions, and part of it was utilised for construction/renovation of assets and personal enrichment, the ED said.
The investigation carried out so far under PMLA has revealed that Hilal Ahmad Wani and others played a major role in availing the PMEGP loan fraudulently, whereby the scheme borrowers were induced to avail the loan, the ED said.
Using the KYC documents and other papers of these borrowers and also using fake invoices of non-existing firms registered in the name of suppliers-cum-brokers and in the name of their family members, the PMEGP loans were sanctioned in criminal conspiracy with J&K Bank officials, the ED said.
Investigations conducted so far have been able to trace the generation of Proceeds of Crime (PoC) to the tune of Rs 11.37 crore, the ED said.
These PoC amounts were diverted through multiple accounts, and part of the PoC was utilised for construction/renovation of assets held in the name of their family members. A bulk of the PoC has been siphoned, thereby establishing the accused persons’ involvement in diversion and concealment, apart from possession and use of the PoC.
Therefore, 11 assets held or under the control of suppliers-cum-borrowers brokers and one bank officer are provisionally attached to safeguard the value of the Proceeds of Crime under section 5(1) of PMLA.
(IANS)
