ED attaches properties worth Rs 10.63 crore in J&K loan fraud case
The agency provisionally attached 11 assets in Srinagar and Bandipora linked to the alleged misuse of the PMEGP scheme.
The Enforcement Directorate (ED) has provisionally attached 11 properties, including buildings and land, worth Rs 10.63 crore in the Srinagar and Bandipora districts of Jammu and Kashmir. According to reports from India Today, the action relates to an alleged fraud involving loans sanctioned under the Prime Minister's Employment Generation Programme (PMEGP).
The investigation follows two cases registered by the Central Bureau of Investigation (CBI) Anti-Corruption Bureau (ACB) in Srinagar. These cases allege that borrowers, bank officials, and private individuals conspired to cheat the Jammu and Kashmir (J&K) Bank and misappropriate funds. The CBI ACB also registered a new case in June 2026.
During surveys at the Sumbal and Gamud Gadkhud branches of J&K Bank, the ED identified that 270 term loan accounts and 270 working capital accounts under the PMEGP scheme had become non-performing assets (NPAs). The total outstanding amount in these accounts is approximately Rs 32 crore.
The agency alleged that Hilal Ahmad Wani and others played major roles by using the identity documents of dummy beneficiaries to secure loans. The ED claimed that fake invoices from non-existent companies were used to facilitate the process, with the assistance of suppliers-cum-brokers and bank officials.
The ED has traced proceeds of crime amounting to Rs 11.37 crore. It stated that these funds were moved through various bank accounts and used for personal expenses or to build and renovate properties held by the accused and their families.
The provisional attachment order aims to prevent the sale or transfer of the assets while the investigation continues.