Crores of public funds allegedly embezzled in JKRLM in J&K; inquiry initiated

Srinagar, March 13, KNT: Authorities have initiated a preliminary inquiry into alleged large-scale embezzlement of public funds in the Jammu and Kashmir Rural Livelihoods Mission (JKRLM), with officials saying the matter is being treated as a serious issue.
Official sources familiar with the matter told the news agency Kashmir News Trust that crores of rupees from government funds meant for rural development and self-help group (SHG) members were allegedly diverted into personal accounts in several districts of the Union Territory.
The funds were reportedly part of various financial support components under the mission, including capitalization funds, bank linkage money and honorarium payments intended to support rural livelihood programmes.
The alleged irregularities have surfaced in multiple districts, with officials confirming that complaints and internal assessments have prompted the initiation of a preliminary inquiry.
Sources said that in district Anantnag, an alleged embezzlement of more than Rs 50 lakh has been reported in block Dachnipora. The funds were reportedly diverted through personal or relatives’ bank accounts instead of being routed through the official financial channel meant for SHG beneficiaries.
Similar allegations have emerged from district Kulgam.
In block DH Pora, funds exceeding Rs 60 lakh are reported to have been misappropriated, while in block DK Marg the alleged misuse of public money is estimated to be more than Rs 1 crore, according to officials familiar with the matter.
Reports of financial irregularities have also surfaced in other districts.
In Bandipora district, an alleged embezzlement exceeding Rs 1.15 crore was reported earlier in block Aloosa. The case had drawn attention after a bank-linked functionary associated with the scheme died by alleged suicide in 2025 following the emergence of the financial discrepancies.
In Budgam district, officials said more than Rs 1 crore is suspected to have been misappropriated in block Khan Sahib. Authorities said some individuals linked to the financial handling of the programme had reportedly left their positions after the alleged irregularities surfaced.
In Baramulla district, more than Rs 1 crore of public funds are suspected to have been misused in block Wagoora, where individuals involved in handling the funds are reported to have left the programme and are currently untraceable, according to sources.
Reports of alleged fund misappropriation have also emerged from Kupwara district, officials said.
According to officials and sources, the alleged diversion of funds involved money meant for SHG members under the rural livelihoods programme, which is designed to support poor households by providing financial assistance, training and access to banking services.
The programme operates through a structured financial channel where funds are transferred from the Mission Directorate to Cluster Level Federations (CLFs) and subsequently to SHG members through bank accounts.
However, investigators suspect that in several cases this channel was bypassed and funds were transferred into personal or relatives’ accounts, officials said.
Officials in several districts acknowledged that complaints regarding financial irregularities had been received and said inquiries were underway to determine the extent of the alleged misappropriation.
Affected SHG members have reportedly approached various authorities seeking redressal and have urged the government to take strict action against those responsible for the alleged diversion of public funds.
Authorities said the preliminary inquiry would determine accountability and could lead to further administrative or legal action depending on the findings. [KNT]



