The Srinagar zonal office of the Enforcement Directorate (ED) has taken major action in connection with the alleged loan scam related to the Prime Minister’s Employment Generation Program (PMEGP). The ED has provisionally attached 11 immovable properties worth around ₹10.63 crore under the Prevention of Money Laundering Act (PMLA). These properties include land and buildings located in Srinagar and Bandipora districts. The invoices were used to acquire these assets through fictitious companies registered in the names of middlemen and their family members. The loan amount was transferred to various bank accounts, and a part of the amount was used for real estate purchase, construction and renovation. The ED has so far detected a crime amount of around ₹11.37 crore during its investigation.
The ED investigation was initiated based on two FIRs filed by the CBI’s Anti-Corruption Branch (ACB) in Srinagar. The FIR alleged misappropriation of PMEGP loan funds and criminal conspiracy among bank officials, borrowers and others. The charges alleged that the officials of the Sumbal and Gamud Gadkhud branches of the Jammu and Kashmir Bank conspired to defraud the bank and misuse the loans granted under the government scheme. The CBI’s ACB filed a second FIR in the case in June 2026.
Investigation revealed that loans were sanctioned using fake PMEGP beneficiaries, fake invoices from companies and companies that did not actually exist. Many of these companies were registered in the names of suppliers and middlemen or their family members.
According to the ED investigation, Hilal Ahmed Wani and others played a key role in this alleged fraud. It is alleged that the middlemen induced the beneficiaries to take PMEGP loans and used their KYC and other documents to get loan approval in connivance with bank officials.