SRINAGAR — The Enforcement Directorate (ED) has provisionally attached immovable properties worth Rs 10.63 crore in connection with an alleged fraud involving the misuse of the Prime Minister’s Employment Generation Programme (PMEGP) loan scheme in Jammu and Kashmir.
The attached properties include 11 assets comprising land and buildings in Srinagar and Bandipora districts, which were allegedly acquired using proceeds of crime generated through fraudulent PMEGP loans, the ED said in a statement on Monday.
The investigation was initiated on the basis of two FIRs registered by the Anti-Corruption Bureau (ACB) and the CBI, Srinagar, alleging misappropriation of PMEGP loan amounts through a criminal conspiracy involving beneficiaries, bank officials of Jammu and Kashmir Bank and other persons.
The ED investigation revealed that loans were allegedly obtained by projecting dummy PMEGP borrowers and using fake invoices issued by non-existent firms and companies in connivance with bank officials and suppliers-cum-brokers.
During the investigation, a survey conducted at the Sumbal and Gamud Gadhkhud branches of J&K Bank under the provisions of the Prevention of Money Laundering Act (PMLA) revealed that 270 term loan accounts and 270 working capital accounts linked to the PMEGP scheme had turned non-performing assets (NPAs). The NPA amount was found to be Rs 83.32 crore, the agency said.
The ED further alleged that Hilal Ahmad Wani and others played a major role in facilitating fraudulent PMEGP loans by inducing borrowers to avail loans and arranging fake invoices of non-existing firms registered in the names of suppliers-cum-brokers or their family members.
The investigation found that proceeds of crime amounting to Rs 11.37 crore were diverted through multiple bank accounts and used for the purchase, construction and renovation of assets, as well as personal enrichment.
The agency identified 11 immovable assets belonging to the accused and their family members and found that a substantial portion of the proceeds of crime had been used to acquire or develop these properties.
Accordingly, the ED provisionally attached the properties worth Rs 10.63 crore under Section 5(1) of the PMLA to safeguard the proceeds of crime.
Further investigation in the case is underway, the agency said. — (KIMS)