ED attaches Rs 10-crore properties in J&K in central employment scheme fraud case

The Enforcement Directorate (ED) has attached 11 properties worth Rs 10.63 crore in Jammu and Kashmir in connection with an alleged fraud involving loans sanctioned under the Prime Minister's Employment Generation Programme (PMEGP).

The properties, comprising land and buildings, are located in Srinagar and Bandipora districts. According to the ED, they are held or controlled by suppliers-cum-brokers and a bank official involved in the misuse of the government employment scheme.

The ED's Srinagar Zonal Office issued a provisional attachment order to prevent the properties from being sold or transferred during the investigation. The action follows allegations that PMEGP loans were fraudulently obtained using fake documents and dummy beneficiaries, with the involvement of officials from two branches of Jammu and Kashmir Bank.

The agency began its investigation based on two cases registered by the CBI Anti-Corruption Bureau in Srinagar. The cases alleged that borrowers, bank officials and private individuals conspired to cheat J&K Bank and misappropriate loan funds. The CBI's ACB registered another case in the matter in June 2026.

During the investigation, the ED examined the Sumbal and Gamud Gadkhud branches of J&K Bank and found that 270 term loan accounts and 270 working capital accounts linked to the PMEGP scheme had turned into non-performing assets (NPAs). The total outstanding amount in these accounts was around Rs 32 crore.

The ED's investigation revealed that loans were sanctioned in the names of dummy beneficiaries using their identity documents and other details. Fake invoices from firms and companies that did not exist were submitted to secure the loans.

The central agency alleged that private individuals acting as suppliers-cum-brokers arranged these documents and worked in collusion with bank officials to facilitate the loan approvals.

The ED identified Hilal Ahmad Wani and others as key players in the fraud. They persuaded beneficiaries to apply for PMEGP loans and used their KYC documents and other papers to secure the funds.

According to the agency, fake invoices were generated in the names of firms registered under the suppliers-cum-brokers or their family members, even though the firms did not exist.

The money obtained through the fraud was subsequently moved through multiple bank accounts. The ED said part of the funds was used to construct or renovate properties held in the names of the accused or their family members, while the remaining amount was diverted for personal use.

The investigation has so far traced proceeds of crime worth Rs 11.37 crore, the agency said. It added that a substantial portion of the money had been siphoned off and that the accused were involved in diverting and concealing the funds.

The 11 properties worth Rs 10.63 crore have now been provisionally attached as part of the investigation.