ED attaches assets worth Rs 10.63 crore in Kashmir loan fraud case
The Enforcement Directorate attached 11 properties in Srinagar and Bandipora districts linked to the alleged misuse of the PMEGP scheme.
The Enforcement Directorate (ED) on Monday attached immovable properties worth Rs 10.63 crore in Kashmir in connection with the alleged misuse of the Prime Minister Employment Generation Programme (PMEGP) scheme. According to The Hindu, the assets were attached under the Prevention of Money Laundering Act (PMLA).
The provisional attachment order covers 11 assets, including lands and buildings in the Srinagar and Bandipora districts. These assets were found in the possession of a bank official of J&K Bank and suppliers-cum-brokers allegedly involved in the scheme's misuse.
The investigation follows two FIRs registered by the Central Bureau of Investigation (CBI) in Srinagar. The agency alleged that PMEGP loans were obtained through a criminal conspiracy involving borrowers, bank officials from the Sumbal and Gamud Gadkhud branches of J&K Bank, and other persons.
The ED stated that dummy borrowers were projected using fake invoices from non-existent firms. A survey conducted under Section 16 of the PMLA revealed that 270 term loan accounts and 270 working capital accounts at the involved branches had turned non-performing assets (NPA), totaling approximately Rs 32 crore.
The agency identified Hilal Ahmad Wani and others as playing a major role in fraudulently availing the loans. The ED said the suspected proceeds of crime, traced to Rs 11.37 crore, were diverted through multiple bank accounts for personal enrichment and the construction or renovation of assets.
Further investigation into the matter is currently in progress.