Srinagar, Sep 21 (NVI): The Jammu and Kashmir Anti-Corruption Bureau (ACB) has registered a case against a former branch head of J&K Grameen Bank and a business correspondent over alleged financial irregularities and premature release of capital subsidy under the Prime Minister’s Employment Generation Programme (PMEGP), officials said on Monday.
The FIR has been registered against Arvind Saini, the then branch head of the bank’s Reban branch in Sopore, and Firdous Ahmad Sheikh, a business correspondent, among others, for allegedly misusing their official positions and causing financial irregularities during 2021-2023, the ACB said.
According to the anti-graft agency, Saini allegedly released or reversed capital subsidy amounting to Rs 41.17 lakh in 25 PMEGP loan accounts before the expiry of the mandatory lock-in period.
The subsidy was allegedly released without the requisite authorisation or adjustment letter from the implementing agency, in violation of PMEGP operational guidelines adopted by the bank, it said.
The ACB alleged that the premature adjustment of the subsidy facilitated the unlawful closure or adjustment of the concerned loan accounts. Six of the accounts were sanctioned in favour of Sheikh and his family members and were allegedly closed prematurely through adjustment of the subsidy.
During verification, the ACB also found that business units were not existing at the time of physical verification in 46 PMEGP units financed by the branch, involving a total sanctioned and disbursed amount of Rs 1.66 crore, it said.
The agency said the findings indicated possible diversion of loan funds and subsidy and alleged that the scheme’s objective had been frustrated in connivance with the beneficiaries.
A case has been registered under the Prevention of Corruption Act, 1988, and relevant provisions of the IPC. Further investigation is underway, the ACB said.—(NVI)
