Investigation Uncovers Alleged Loan Diversion Through Fake Invoices, Dummy Beneficiaries; Properties Attached Across Srinagar, Bandipora
SRINAGAR, NOVEMBER 09 :
The Enforcement Directorate (ED) has provisionally attached 11 immovable properties valued at approximately ₹10.63 crore in Srinagar and Bandipora districts in connection with an alleged multi-crore financial fraud involving loans sanctioned under the Prime Minister’s Employment Generation Programme (PMEGP) through branches of Jammu and Kashmir Bank.
The attachment action was carried out by the ED’s Srinagar Zonal Office under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
According to an official statement issued by the agency, the attached properties comprise land and buildings allegedly linked to suppliers-cum-brokers, certain bank officials of J&K Bank and other individuals suspected of involvement in the alleged diversion and laundering of loan funds.
The investigation was initiated following two separate FIRs registered by the Anti-Corruption Bureau (ACB) and the Central Bureau of Investigation (CBI), Srinagar, concerning alleged irregularities in the disbursement and utilisation of PMEGP loans.
The agencies have alleged that loans were fraudulently obtained through a criminal conspiracy involving beneficiaries, bank officials posted at Sumbal and Gamud Gadhkhud branches of J&K Bank, and private individuals.
DUMMY BENEFICIARIES, FAKE INVOICES USED TO SECURE LOANS
The ED investigation has allegedly uncovered a modus operandi in which dummy borrowers were projected to obtain PMEGP loans, while fabricated invoices belonging to non-existent firms and companies were allegedly submitted to facilitate the release of loan amounts.
The investigation further indicated the alleged involvement of private suppliers-cum-brokers and certain bank officials who reportedly facilitated the processing and disbursement of loans in violation of prescribed procedures.
During a survey conducted at the Sumbal and Gamud Gadhkhud branches under Section 16 of the PMLA, investigators identified 270 term loan accounts along with an equal number of working capital accounts linked to the PMEGP scheme.
The outstanding non-performing assets (NPA) associated with these accounts were found to be approximately ₹32 crore, according to the ED statement.
₹11.37 CRORE PROCEEDS OF CRIME IDENTIFIED
The agency stated that its investigation had traced alleged proceeds of crime amounting to approximately ₹11.37 crore.
These funds were reportedly transferred through multiple bank accounts and subsequently utilised for purchasing, constructing and renovating properties, besides meeting personal expenditure.
The ED has identified Hilal Ahmad Wani and others as allegedly playing significant roles in the fraudulent procurement of PMEGP loans.
According to investigators, borrowers were allegedly persuaded to obtain loans by providing their KYC documents and other necessary records, while forged invoices issued in the names of fictitious firms registered under suppliers-cum-brokers or their family members were allegedly used to support the loan applications.
PROPERTIES ATTACHED TO PREVENT FURTHER DIVERSION
The ED further stated that a portion of the suspected proceeds of crime was allegedly diverted and invested in assets held in the names of family members, while substantial amounts were reportedly siphoned off through multiple financial transactions.
The agency said the investigation had established suspected links between the accused individuals and the alleged generation, transfer, concealment, possession and utilisation of proceeds of crime.
Consequently, 11 immovable properties allegedly connected with the proceeds of crime and held under the control of suppliers-cum-brokers, bankers and one bank officer have been provisionally attached under Section 5(1) of the PMLA.
The attachment is aimed at preserving the value of the suspected proceeds of crime during the ongoing investigation.
The Enforcement Directorate has stated that further investigation into the alleged financial irregularities, the role of other individuals and the movement of funds is underway.
The case highlights serious alleged irregularities in the implementation of the PMEGP scheme and raises questions about the financial scrutiny and verification mechanisms involved in the sanctioning and disbursement of loans.(KNC)