Srinagar, Nov 9 : The Enforcement Directorate (ED) has provisionally attached 11 immovable properties, including land and buildings worth Rs 10.63 crore, in Jammu and Kashmir’s Srinagar and Bandipora districts in connection with an alleged loan fraud involving the Centre’s Prime Minister’s Employment Generation Programme (PMEGP), the agency said on Monday.
The properties were allegedly acquired or developed using proceeds of crime generated through the fraudulent disbursement of loans under the credit-linked subsidy scheme, the ED said in a statement.
The agency’s Srinagar Zonal Office issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA) against assets allegedly held or controlled by suppliers-cum-brokers and an official of Jammu and Kashmir Bank.
The money laundering investigation was initiated based on two FIRs registered by the Central Bureau of Investigation’s (CBI) Anti-Corruption Branch in Srinagar. The cases alleged that bank officials, PMEGP beneficiaries, private individuals and suppliers-cum-brokers conspired to fraudulently obtain and misappropriate loan funds through the Sumbal and Gamud Gadkhud branches of J&K Bank.
The CBI registered another FIR in connection with the matter in June this year.
During the investigation, the ED conducted surveys at the two bank branches and found that 270 term loan accounts and an equal number of working capital accounts sanctioned under PMEGP had turned into non-performing assets (NPAs).
The outstanding amount in these accounts was estimated at around Rs 32 crore, the agency said.
The probe allegedly revealed that loans were secured by projecting dummy beneficiaries and submitting fake invoices purportedly issued in the names of non-existent firms and companies, in collusion with bank officials and private individuals.
The ED identified Hilal Ahmad Wani and others as key accused who allegedly facilitated the transactions by persuading beneficiaries to apply for loans using their KYC documents and other credentials.
The agency said it had traced proceeds of crime amounting to Rs 11.37 crore, which were allegedly routed through multiple bank accounts.
A portion of the funds was allegedly used to construct or renovate properties held in the names of the accused and their family members, while the remaining amount was siphoned off.
The attachment of the 11 properties under Section 5(1) of the PMLA is intended to prevent the alleged proceeds of crime from being transferred or disposed of during the investigation, the ED said.
