Daijiworld Media Network - Srinagar
Srinagar, Nov 9: The Directorate of Enforcement (ED), Srinagar Zonal Office, has provisionally attached 11 properties, including buildings and plots, worth Rs 10.63 crore in Srinagar and Bandipora districts of Jammu and Kashmir in connection with an alleged loan fraud under the Centre's Prime Minister's Employment Generation Programme (PMEGP).
In a statement issued on Monday, the ED said a Provisional Attachment Order had been issued under the Prevention of Money Laundering Act (PMLA) against 11 assets comprising land and buildings allegedly held by suppliers-cum-brokers and an official of J&K Bank who were involved in the misuse of the PMEGP, a Central credit-linked subsidy scheme.
The ED investigation was initiated based on two FIRs registered by the Central Bureau of Investigation's Anti-Corruption Branch (CBI-ACB), Srinagar. The FIRs alleged misappropriation of PMEGP loan funds through a criminal conspiracy involving borrowers, officials of the Sumbal and Gamud Gadkhud branches of J&K Bank and other unidentified persons.
The accused allegedly cheated the bank, misappropriated loan funds and caused wrongful financial losses to the bank while securing corresponding illegal gains for themselves. The CBI's Anti-Corruption Branch also registered a fresh FIR in the matter in June this year.
During its investigation under the PMLA, the ED conducted surveys at the Sumbal and Gamud Gadkhud branches of J&K Bank. The exercise revealed that 270 term loan accounts and an equal number of working capital accounts sanctioned under the PMEGP scheme had turned into non-performing assets (NPAs). The total outstanding NPA amount was found to be approximately Rs 32 crore.
The investigation revealed that loans were allegedly obtained by projecting dummy PMEGP beneficiaries and submitting fake invoices issued in the names of non-existent firms and companies, in connivance with bank officials and private individuals acting as brokers.
The suspected proceeds of crime generated through the scheduled offences were allegedly diverted through multiple bank accounts and transactions. A portion of the funds was reportedly used for the construction and renovation of properties, while the remaining amount was utilised for personal enrichment.
The ED further said its investigation had identified Hilal Ahmad Wani and others as key players in fraudulently securing PMEGP loans. The accused allegedly induced beneficiaries to apply for loans and used their KYC and other documents, along with fabricated invoices of non-existent firms registered in the names of suppliers-cum-brokers or their family members, to obtain loan sanctions in conspiracy with J&K Bank officials.
The agency has so far traced proceeds of crime amounting to Rs 11.37 crore. These funds were allegedly routed through multiple bank accounts, with a portion being used to construct or renovate properties held in the names of family members.
The ED said a substantial portion of the proceeds of crime had been siphoned off, establishing the alleged involvement of the accused in their diversion, concealment, possession and use.
Accordingly, 11 properties held or controlled by suppliers-cum-brokers and a bank official have been provisionally attached under Section 5(1) of the PMLA to safeguard the value of the proceeds of crime, the agency said.