Srinagar, Nov 9, KDC: The Directorate of Enforcement (ED), Srinagar Zonal Office, has provisionally attached immovable properties valued at Rs 10.63 crore in connection with a money laundering investigation into alleged irregularities in loans sanctioned under the Prime Minister’s Employment Generation Programme (PMEGP).
According to an official press release, the provisional attachment order has been issued under the Prevention of Money Laundering Act (PMLA), 2002, covering 11 assets comprising land and buildings in Srinagar and Bandipora districts of Kashmir, reported news agency Kashmir Dot Com.
The properties are allegedly in the possession of suppliers-cum-brokers, bank officials of J&K Bank and other persons suspected of involvement in the misuse of the PMEGP scheme.
The ED initiated its investigation on the basis of two FIRs registered by the Anti-Corruption Bureau (ACB) and the CBI, Srinagar, alleging misappropriation of PMEGP loan amounts through a criminal conspiracy involving PMEGP borrowers, bank officials and suppliers-cum-brokers.
The investigation revealed that the loans were allegedly obtained by projecting dummy borrowers and submitting fake invoices issued by non-existent firms and companies. Private suppliers-cum-brokers allegedly conspired with bank officials to facilitate the sanctioning and disbursement of loans using the KYC documents and other records of borrowers.
During the investigation, the ED conducted surveys at the Sumbal and Gamud Gadkhud branches of J&K Bank under Section 16 of the PMLA. The surveys revealed that 270 term loan accounts and an equal number of working capital accounts, all linked to the PMEGP scheme, had turned into Non-Performing Assets (NPAs).
The total NPA amount in these 540 accounts was found to be approximately Rs 32 crore, the ED said.
The agency further stated that the suspected proceeds of crime were diverted through multiple bank accounts and partly utilised for the construction and renovation of properties, besides personal enrichment.
The investigation identified Hilal Ahmad Wani and others as allegedly playing a major role in fraudulently securing PMEGP loans. According to the ED, borrowers were induced to avail themselves of loans using their KYC documents and other records, while fake invoices of non-existent firms registered in the names of suppliers-cum-brokers and their family members were allegedly used to facilitate the transactions in connivance with J&K Bank officials.
The ED said it had traced proceeds of crime amounting to Rs 11.37 crore, which were routed through multiple bank accounts. A portion of the funds was allegedly utilised for constructing and renovating assets held in the names of family members of the accused persons.
A substantial portion of the alleged proceeds of crime was also siphoned off, with the investigation indicating their diversion, concealment, possession and use by the accused, the agency said.
Accordingly, the ED provisionally attached 11 identified immovable assets under Section 5(1) of the PMLA to safeguard the value of the alleged proceeds of crime.
Further investigation in the matter is underway. (KDC)