Srinagar, Nov 9 (NVI): The Enforcement Directorate (ED) has provisionally attached 11 immovable properties worth Rs 10.63 crore in Srinagar and Bandipora districts in connection with an alleged fraud involving loans sanctioned under the Prime Minister’s Employment Generation Programme (PMEGP), officials said on Monday.
The attachment order was issued by the ED’s Srinagar Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002, covering land and buildings allegedly held by suppliers-cum-brokers, bank officials of Jammu and Kashmir Bank and other persons involved in the alleged irregularities.
The money laundering investigation was initiated on the basis of two FIRs registered by the Anti-Corruption Bureau (ACB) and the Central Bureau of Investigation (CBI), Srinagar, alleging misappropriation of PMEGP loan funds through a criminal conspiracy involving borrowers, bank officials and private persons.
According to the ED, the investigation revealed that loans were allegedly obtained by projecting dummy borrowers and submitting fake invoices issued in the names of non-existent firms and companies.
The alleged fraud involved officials of J&K Bank’s Sumbal and Gamud Gadhkhud branches, along with private persons acting as suppliers-cum-brokers, the agency said.
A survey conducted at the two bank branches under Section 16 of the PMLA revealed 270 term loan accounts and an equal number of working capital accounts linked to PMEGP loans. The non-performing assets (NPA) in these accounts were found to be around Rs 32 crore, it said.
The investigation further revealed that proceeds of crime generated through the alleged fraud were routed through multiple bank accounts and subsequently used for construction and renovation of properties, besides personal enrichment.
The ED said its investigation had identified Hilal Ahmad Wani and others as allegedly playing a major role in fraudulently obtaining PMEGP loans.
Borrowers were allegedly persuaded to avail loans using their KYC documents and other records, while fake invoices of non-existent firms registered in the names of suppliers-cum-brokers or their family members were used to facilitate the disbursement of funds in connivance with bank officials.
The agency has traced proceeds of crime amounting to Rs 11.37 crore, which were allegedly diverted through multiple bank accounts. A portion of the money was used for construction and renovation of properties held in the names of family members, while a substantial amount was allegedly siphoned off.
The ED said the 11 properties were provisionally attached under Section 5(1) of the PMLA to safeguard the value of the alleged proceeds of crime.
Further investigation into the case is underway.—(NVI)
