ED Attaches 11 Immovable Properties Worth Rs 10.63 Crore in Kashmir Over Alleged PMEGP Loan Fraud
Srinagar, Nov 9, KNT: The Enforcement Directorate (ED) has provisionally attached 11 immovable properties worth Rs 10.63 crore in Srinagar and Bandipora districts in connection with the alleged misuse of the Prime Minister Employment Generation Programme (PMEGP), officials said on Monday.
The ED’s Srinagar Zonal Office issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA), 2002, covering land and buildings allegedly held or controlled by suppliers-cum-brokers, bank officials and other persons suspected of involvement in the case.
According to the agency, the investigation originated from two FIRs registered by the Anti-Corruption Bureau (ACB) and the Central Bureau of Investigation (CBI) in Srinagar, alleging misappropriation of PMEGP loan funds through a criminal conspiracy involving borrowers, officials of Jammu and Kashmir Bank’s Sumbal and Gamud Gadhkhud branches, and private persons.
The ED alleged that loans under the government-backed employment generation scheme were fraudulently obtained by projecting dummy borrowers and using fabricated invoices purportedly issued by non-existent firms. The agency said the alleged operation involved collusion between private brokers and bank officials to secure loan sanctions without genuine underlying business transactions.
A survey conducted by the ED at the two bank branches under Section 16 of the PMLA reportedly identified 270 term loan accounts and an equal number of working capital accounts linked to PMEGP. The agency said the accounts had turned into non-performing assets (NPAs), with the outstanding NPA amount reported at around Rs 32 crore.
The investigation has also traced alleged proceeds of crime amounting to Rs 11.37 crore, according to the ED. The agency said the funds were routed through multiple bank accounts, with a portion allegedly used for the construction and renovation of properties held in the names of family members, while a substantial amount was suspected to have been siphoned off.
The ED identified Hilal Ahmad Wani and others as having allegedly played a major role in fraudulently obtaining the loans. Investigators suspect that borrowers’ KYC documents were used alongside invoices from non-existent firms registered in the names of suppliers-cum-brokers and their relatives to facilitate the alleged fraud.
The agency said the attachment of the 11 properties under Section 5(1) of the PMLA was intended to safeguard the suspected proceeds of crime. Further investigation is underway. [KNT]
© Kashmir News Trust (KNT). Unauthorized use without attribution is prohibited.
