ED attaches 11 properties of accused including J&K Bank official in Rs 32 crore PMEGP loan fraud case

STC NEWS DESK
SRINAGAR, NOVEMBER 09 (STC): Srinagar Zonal Office of the Enforcement Directorate (ED) has temporarily attached 11 immovable properties worth Rs 10.63 crore of suppliers, borrowers, brokers and a Jammu and Kashmir Bank official accused in the money laundering case related to alleged misuse of Prime Minister Employment Generation Programme (PMEGP) loans.
According to a statement issued by the ED, 11 properties located in Srinagar and Bandipora districts have been attached through provisional attachment orders issued under the Prevention of Money Laundering Act. These assets include lands and buildings, which were allegedly in the possession or control of suppliers, brokers and an officer of Jammu and Kashmir Bank involved in the misuse of the PMEGP scheme.
According to the ED, the investigation in this case was initiated on the basis of two FIRs registered by the Anti-Corruption Bureau CBI Srinagar. In these cases, charges of alleged misappropriation of loans provided under PMEGP and criminal conspiracy were made. The investigation also examined the alleged role of some officers of the Sumbal branch and Gamud Gadakhud branch of Jammu and Kashmir Bank, PMEGP borrowers and other unknown persons.
The ED said that a fresh FIR was also registered in this case by the CBI, ACB in June 2026, after which the matter was further investigated. During the investigation under the Money Laundering Act, the ED conducted a survey under Section 16, PMLA in the Sumbal and Gamud Gadakhud branches of Jammu and Kashmir Bank. During the survey, it was revealed that 270 term loan accounts and 270 working capital accounts related to the PMEGP scheme had turned into non-performing assets.
According to the ED, a total of Rs 32 crore was found to be NPA in these accounts. The investigation allegedly revealed that fictitious borrowers were brought forward to obtain loans under the PMEGP and fake invoices of firms and companies were used that did not actually exist.
According to the ED, this entire process was allegedly carried out through a criminal conspiracy between bank officials, private individuals, suppliers and brokers, as a result of which loans were sanctioned under the PMEGP scheme.
The investigation also revealed that the proceeds of crime were allegedly transferred through various bank accounts in various transactions. A part of this amount was allegedly used for construction and renovation of properties as well as for personal interests and financial gain.
According to the ED, the investigation so far has revealed the key role of Hilal Ahmed Wani and others in allegedly obtaining PMEGP loans through fraud. According to the investigating agency, potential PMEGP borrowers were allegedly induced to obtain loans and their KYC documents, including other documents, were used. In addition, fake invoices of non-existent firms registered in the names of such suppliers and brokers or their families were prepared. The ED said that on the basis of these documents, PMEGP loans were sanctioned through an alleged criminal conspiracy with some officers of Jammu and Kashmir Bank.
The ED said that so far during the investigation, alleged ‘proceeds of crime’ worth Rs 11.37 crore have been traced.
According to the ED, a large part of the money allegedly received was transferred through various means and disappeared. The ED said that to preserve the value of the proceeds of crime and prevent its possible disposal, 11 assets in the possession or control of suppliers, borrowers, brokers and a bank officer have been temporarily attached.
(Straight Talk Communications)