Srinagar, Nov 9 — The Directorate of Enforcement's (ED) Srinagar Zonal Office has attached 11 properties, including buildings and plots, worth Rs 10.63 crore in two J&K districts in connection with a case of loan fraud in the Centre's Prime Minister Employment Generation Programme (PMEGP), the agency said on Monday.
The ED, in a statement said, said that its Srinagar Zonal Office's Provisional Attachment Order, under the Prevention of Money Laundering Act (PMLA), has been issued in respect of 11 assets consisting of lands and buildings in Srinagar and Bandipora districts, which were found in the possession of suppliers-cum-brokers and an official of J&K Bank involved in misusing the PMEGP - a Central credit-linked subsidy scheme.
The financial probe agency's investigation was initiated on the basis of two FIRs registered by the Central Bureau of Investigation's Anti-Corruption Branch, Srinagar, alleging misappropriation of PMEGP loan amounts in criminal conspiracy with PMEGP borrowers, officials of Sumbal Branch and Gamud Gadkhud Branch of J&K Bank, and other unknown persons. The FIRs said the accused cheated the bank and misappropriated funds and caused wrongful loss to the bank and corresponding wrongful gain to themselves, the statement said.
The CBI ACB has also registered a fresh FIR in the matter in June this year.
During the ED investigation under the PMLA, a survey conducted at the Sumbal and Gamud Gadkhud Branches of the J&K Bank revealed that 270 term loan accounts along with 270 working capital accounts pertaining to the two branches under the PMEGP scheme had turned NPAs. The NPA amount was found to be about Rs 32 crore.
Investigation revealed that PMEGP loans were availed by projecting dummy PMEGP borrowers, by using fake invoices of non-existent firms/companies, in criminal conspiracy with bank officials and private persons-cum-brokers.
The suspected proceeds derived from the scheduled offences were diverted through bank accounts in multiple transactions, and part of it was utilised for construction/renovation of assets and personal enrichment.
Investigation carried out so far has revealed that Hilal Ahmad Wani and others played a major role in availing PMEGP loans fraudulently, whereby PMEGP borrowers were induced to avail loans. Using KYC documents and other documents of these borrowers and fake invoices of non-existing firms registered in the name of suppliers-cum-brokers and/or their family members, the PMEGP loans were sanctioned in criminal conspiracy with J&K Bank officials.
Investigation has traced generation of Proceeds of Crime to the tune of Rs 11.37 crore.
These PoC amounts were diverted through multiple accounts, and part of the PoC was utilised for construction/renovation of assets held in the name of their family members. A bulk of the PoC has been siphoned, thereby establishing the accused persons’ involvement in diversion and concealment, apart from possession and use of the PoC.
Therefore, 11 assets held or under the control of suppliers-cum-borrowers brokers and one bank officer are provisionally attached to safeguard the value of the Proceeds of Crime under Section 5(1) of the PMLA, the ED said.