ED attaches 11 properties worth ₹10.63 crore in Srinagar PMEGP fraud case
Synopsis
The ED has provisionally attached 11 properties worth ₹10.63 crore in Kashmir, exposing a sprawling PMEGP fraud where dummy borrowers, forged invoices, and colluding J&K Bank officials turned 540 loan accounts into NPAs totalling ₹32 crore. With proceeds of crime traced to ₹11.37 crore, more attachments are likely as the case widens.
Key Takeaways
The ED's Srinagar Zonal Office provisionally attached 11 properties worth ₹10.63 crore in Srinagar and Bandipora on 9 November 2026 .
The fraud involved dummy borrowers , fake invoices of non-existent firms, and alleged criminal conspiracy with J&K Bank officials at the Sumbal and Gamud Gadkhud branches.
A PMLA survey found 270 term loan accounts and 270 working capital accounts linked to the PMEGP scheme had turned NPA, amounting to roughly ₹32 crore .
Investigators have traced Proceeds of Crime worth ₹11.37 crore ; funds were layered through multiple accounts and used for asset construction and personal enrichment.
Hilal Ahmad Wani and others have been identified as key accused; the CBI and ACB registered a fresh FIR in June 2026 .
The attachment under Section 5(1) of the PMLA covers assets held by suppliers-cum-brokers and one J&K Bank officer.
The Enforcement Directorate (ED) has provisionally attached 11 immovable properties — including buildings and plots — worth ₹10.63 crore in Srinagar and Bandipora districts of Jammu and Kashmir, in connection with an alleged fraud involving the Prime Minister Employment Generation Programme (PMEGP). The action, taken on 9 November 2026 by the ED's Srinagar Zonal Office under the Prevention of Money Laundering Act (PMLA), targets suppliers-cum-brokers and at least one official of J&K Bank accused of systematically misusing a central-sector credit-linked subsidy scheme.
Background: How the Fraud Was Structured
According to the ED, the investigation was triggered by two First Information Reports (FIRs) filed by the Anti-Corruption Bureau (ACB) and the Central Bureau of Investigation (CBI) in Srinagar, alleging criminal misappropriation of PMEGP loans. The accused reportedly used dummy borrowers, fabricated invoices of non-existent firms, and colluded with officials at the Sumbal Branch and Gamud Gadkhud Branch of J&K Bank to fraudulently secure sanctioned loans. The CBI and ACB also registered a fresh FIR in the matter in June 2026.
The ED identified Hilal Ahmad Wani and others as playing a major role in inducing scheme borrowers to avail loans fraudulently. KYC documents belonging to these borrowers, combined with fake invoices registered in the names of suppliers-cum-brokers and their family members, were allegedly used to get loans sanctioned in criminal conspiracy with bank officials.
Scale of the Fraud: NPA Accounts and Proceeds of Crime
A survey conducted at the two J&K Bank branches under Section 16 of the PMLA uncovered 270 term loan accounts and 270 working capital accounts linked to the PMEGP scheme that had turned into Non-Performing Assets (NPAs). The total NPA amount was approximately ₹32 crore, according to the ED's statement.
Investigators have so far traced Proceeds of Crime (PoC) worth ₹11.37 crore. These funds were routed through multiple bank accounts in layered transactions, with a portion used for construction and renovation of assets held in the names of family members, and a significant bulk allegedly siphoned off entirely.
What Was Attached and Why
The 11 provisionally attached assets are held by or under the control of the suppliers-cum-brokers and one bank officer identified during the investigation. The ED stated that the attachment was carried out under Section 5(1) of the PMLA to safeguard the value of the proceeds of crime and prevent their further dissipation. The properties are located across Srinagar and Bandipora districts.
What the PMEGP Scheme Is
The Prime Minister Employment Generation Programme is a central-sector, credit-linked subsidy scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME), designed to generate self-employment opportunities in rural and urban areas. The scheme channels subsidised loans through banks, making it vulnerable to exploitation via fictitious borrowers and inflated invoices — a pattern that investigators say played out here across hundreds of accounts.
What Happens Next
The provisional attachment will be followed by proceedings before the Adjudicating Authority under the PMLA. Separately, the CBI and ACB criminal cases against the accused continue. With PoC traced to ₹11.37 crore against attached assets worth ₹10.63 crore, investigators are likely to pursue additional attachments or recovery actions to close the gap. The case signals intensifying scrutiny of government-backed lending schemes in the region.
Point of View
The entire safeguard architecture collapses. The fact that 540 accounts across just two branches turned NPA — a combined ₹32 crore — without triggering earlier red flags points to systemic oversight failures, not merely individual wrongdoing. The ED action is significant, but the more pressing question is whether the MSME Ministry and J&K Bank's internal audit apparatus are equipped to detect such patterns before the damage reaches this scale. Procedural reform, not just prosecution, is what will protect the PMEGP's intended beneficiaries.
NationPress
9 Nov 2026
Frequently Asked Questions
What is the PMEGP fraud case in Srinagar?
The PMEGP fraud in Srinagar involves the alleged misuse of the Prime Minister Employment Generation Programme, a central-sector credit-linked subsidy scheme. Accused individuals reportedly used dummy borrowers and fake invoices of non-existent firms in criminal conspiracy with J&K Bank officials to fraudulently avail loans, turning hundreds of accounts into NPAs worth approximately ₹32 crore.
What action has the ED taken in the case?
The Enforcement Directorate's Srinagar Zonal Office has provisionally attached 11 immovable properties — buildings and plots — worth ₹10.63 crore in Srinagar and Bandipora districts under Section 5(1) of the Prevention of Money Laundering Act (PMLA). The properties were held by suppliers-cum-brokers and one J&K Bank officer linked to the alleged fraud.
Who are the key accused in the PMEGP fraud?
The ED has identified Hilal Ahmad Wani and others as playing a major role in fraudulently availing PMEGP loans. Suppliers-cum-brokers, their family members, and officials of the Sumbal and Gamud Gadkhud branches of J&K Bank are also named as accused. The CBI and ACB have registered FIRs against them.
How large is the alleged fraud in the PMEGP case?
A PMLA survey of two J&K Bank branches found 540 accounts — 270 term loan and 270 working capital — linked to the PMEGP scheme had become NPAs, with a total NPA amount of approximately ₹32 crore. The ED has so far traced Proceeds of Crime worth ₹11.37 crore.
What happens after the provisional attachment?
Following a provisional attachment under the PMLA, the case proceeds before the Adjudicating Authority, which determines whether the attachment should be confirmed. The parallel CBI and ACB criminal cases against the accused continue independently. Further attachments or recovery actions are likely given that traced proceeds of crime exceed the value of assets attached so far.
