ED attaches 11 properties worth Rs 10.63 crore in J&K loan fraud case
The Enforcement Directorate provisionally attached assets in Srinagar and Bandipora districts regarding the alleged misuse of the PMEGP scheme.
The Enforcement Directorate (ED) on Monday provisionally attached 11 immovable properties, including plots and buildings, worth Rs 10.63 crore in the Srinagar and Bandipora districts of Jammu and Kashmir. According to Telangana Today, the action relates to alleged irregularities in the Prime Minister's Employment Generation Programme (PMEGP), a Central sector credit-linked subsidy scheme.
The Srinagar Zonal Office issued the attachment order under the Prevention of Money Laundering Act (PMLA). The assets are reportedly held by a J&K Bank official, suppliers-cum-brokers, and other individuals allegedly involved in the misuse of the programme.
The investigation began following two FIRs filed by the Anti-Corruption Bureau (ACB) and the Central Bureau of Investigation (CBI) in Srinagar. These FIRs alleged that borrowers, bank officials from the Sumbal and Gamud Gadkhud branches of J&K Bank, and unidentified persons conspired to misappropriate funds, causing losses to the bank.
A survey conducted at the two bank branches under Section 16 of the PMLA identified 270 term loan accounts and 270 working capital accounts linked to the PMEGP that had become non-performing assets (NPAs). The outstanding NPA amount is approximately Rs 32 crore.
The ED stated that Hilal Ahmad Wani and others played a significant role in the fraud by using dummy borrowers and fake invoices from non-existent companies. The agency has traced proceeds of crime totalling Rs 11.37 crore, which were allegedly used for personal enrichment and property renovation.
The agency further alleged that a large portion of the funds was siphoned off through various bank transactions. Further investigation is currently underway.