The ED has attached properties worth Rs 10.63 crore in Kashmir linked to a PMEGP loan fraud case, involving collusion between brokers and J&K Bank officials to siphon off funds using fake invoices and dummy borrowers.
ED Action in Kashmir PMEGP Fraud Case
The Enforcement Directorate (ED) on Monday said it has attached immovable properties valued at Rs 10.63 crore in Kashmir in a case linked to the misuse of the Prime Minister Employment Generation Programme (PMEGP) scheme. ED’s Srinagar zonal office attached the assets under the Prevention of Money Laundering Act (PMLA), 2022 following a provisional attachment order issued in respect of 11 assets consisting of lands and buildings in Srinagar and Bandipora districts of Kashmir, which are found in the possession of suppliers-cum-brokers, bank official of J&K Bank involved in misusing the PMEGP scheme.
Investigation and Findings
ED initiated its investigation on the basis of two First Information Reports (FIRs) of the Central Bureau of Investigation in Srinagar alleging misappropriation of PMEGP scheme loans in criminal conspiracy with the PMEGP borrowers, bank officials of Sumbal and Gamud Gadkhud branches of J&K Bank and other unknown persons who cheated the bank and misappropriated funds, causing wrongful loss to the bank and corresponding wrongful gain to themselves.
ED said its investigation revealed that “PMEGP loan amounts were availed by projecting dummy PMEGP borrowers by using fake invoices of non-existing firms and companies and in criminal conspiracy with bank officials at the Sumbal and Gamud Gadkhud branches of J&K Bank by private persons-cum-brokers.” The CBI also registered a fresh FIR in the matter in June 2026.
Details of NPA and Financial Irregularities
During investigation under PMLA, ED said a survey conducted at the Sumbal and Gamud Gadkhud branches under section 16 of PMLA revealed 270 term loan accounts along with 270 working capital accounts pertaining to these bank branches in respect of the PMEGP scheme had turned Non-Performing Assets (NPA). “The NPA amount was found to the extent of about Rs 32 crore,” the federal agency said in a statement. “The suspected proceeds derived from the scheduled offences were diverted through bank accounts in multiple transactions, and part of it was utilised for construction and renovation of assets and personal enrichment,” it said.
ED’s investigation, carried out so far under PMLA, has revealed that Hilal Ahmad Wani and others played a major role in availing PMEGP loan fraudulently, whereby PMEGP borrowers were induced to avail PMEGP loan. “Using the KYC documents and other documents of these borrowers and also using fake invoices of non-existing firms registered in the name of suppliers-cum-brokers and/or in the name of their family members, the PMEGP loans got sanctioned with criminal conspiracy with J&K Bank officials,” ED further said.
Investigation conducted so far could trace generation of Proceeds of Crime (PoC) to the tune of Rs 11.37 crore, said the ED, adding “these PoC amount were diverted through multiple accounts and part of the PoC was utilised for construction and renovation of assets held in the name of their family members.” “The bulk of the PoC has been siphoned, thereby establishing the accused persons’ involvement in diversion, concealment, apart from possession and use of the PoC,” it added. (ANI)
(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)