New Delhi: The Enforcement Directorate (ED) has intensified its crackdown on individuals allegedly involved in corruption and fraud under the Prime Minister’s Employment Generation Programme (PMEGP), a government initiative aimed at promoting self-employment and creating job opportunities for young people. The ED’s Srinagar Regional Office has provisionally attached 11 immovable properties worth 10.63 crore in connection with an alleged multi-crore loan scam involving fake beneficiaries, shell companies, and suspected collusion with bank officials.
Properties in Srinagar and Bandipora Attached
The ED’s action has reportedly created a stir among the accused and their associates. The attached properties include land and buildings located in Srinagar and Bandipora districts of Kashmir. According to the investigating agency, these properties were allegedly held or controlled by suppliers, intermediaries, and an official of Jammu and Kashmir Bank suspected of involvement in irregularities in loan disbursement under the scheme.
Fake Beneficiaries and Shell Companies Used to Secure Loans
The ED investigation revealed that individuals were allegedly presented as beneficiaries under the PMEGP scheme using their names and identity documents to obtain loan approvals. Fake bills and invoices were reportedly prepared in the names of non-existent firms and companies. Private individuals and supplier-cum-intermediaries allegedly entered into a criminal conspiracy with certain officials of Jammu and Kashmir Bank’s Sumbal and Gamud Gadkhud branches to facilitate the release of loan funds. The money was subsequently transferred through multiple transactions into different bank accounts. The investigation has reportedly identified Hilal Ahmad Wani and others as key alleged participants. According to the ED, these individuals persuaded prospective PMEGP beneficiaries to apply for loans and used their identity documents and other paperwork to execute the alleged fraudulent loan process.
270 Loan Accounts Turned NPA, Bank Suffered Losses of Nearly 32 Crore
The alleged scam came to light during surveys conducted by the ED under Section 16 of the Prevention of Money Laundering Act (PMLA) at Jammu and Kashmir Bank’s Sumbal and Gamud Gadkhud branches. According to the agency, 270 term loan accounts associated with the PMEGP scheme, along with 270 linked working capital accounts, had turned into non-performing assets (NPAs). The total NPA amount in these accounts was estimated at approximately ₹32 crore. The scheme, which was designed to provide financial assistance to young entrepreneurs, was allegedly misused, resulting in substantial losses to the banking system.
11.37 Crore in Alleged Proceeds of Crime Traced
The ED has so far identified approximately 11.37 crore as alleged proceeds of crime. According to the agency, the funds were transferred through multiple bank accounts, with a portion allegedly used for the construction and renovation of properties held in the names of the accused and their family members. Investigators also found that a significant portion of the alleged proceeds had been diverted. The agency examined the transfer, concealment, possession, and utilisation of the funds. To safeguard the alleged proceeds of crime, the ED issued a provisional attachment order under Section 5(1) of the PMLA against 11 immovable properties valued at 10.63 crore.
Investigation Originated from CBI FIRs, Fresh Case Registered in June 2026
The ED initiated its investigation based on two FIRs registered by the Central Bureau of Investigation’s Anti-Corruption Branch in Srinagar. The cases involved allegations of misuse of PMEGP loan funds, criminal conspiracy with bank officials, and financial losses to the bank. In view of the seriousness of the matter, the CBI’s Anti-Corruption Branch registered another FIR in June 2026, further expanding the scope of the investigation into financial transactions, bank accounts, and properties linked to the alleged scam.
ED Investigation Continues, Further Action Expected
The ED’s action highlights the agency’s efforts to prevent the concealment and preservation of assets allegedly acquired through fraud involving government schemes. While 11 properties worth 10.63 crore have been provisionally attached, the investigation remains ongoing. The agency is examining how much money allegedly reached the accused, the bank accounts through which the funds were routed, and whether additional individuals were involved in the alleged network.
