Srinagar, Sep 21 : The Anti-Corruption Bureau (ACB) of Jammu and Kashmir has registered a case against a former branch head of J&K Grameen Bank and others for alleged financial irregularities in the implementation of the Prime Minister’s Employment Generation Programme (PMEGP), officials said.
The FIR, registered as Case No. 05/2026, names Arvind Saini, the then Branch Head of J&K Grameen Bank’s Reban branch in Sopore, Business Correspondent Firdous Ahmad Sheikh and others.
According to the ACB, its verification found that Saini, allegedly in connivance with Sheikh, prematurely released or reversed capital subsidy amounting to Rs 41.17 lakh in 25 PMEGP loan accounts before expiry of the mandatory lock-in period.
The subsidy was allegedly adjusted without the requisite authorisation or adjustment letter from the implementing agency, in violation of PMEGP operational guidelines adopted by the bank, the agency said.
The ACB further alleged that six of the 25 loan accounts had been sanctioned in favour of Sheikh and his family members and were prematurely closed by adjustment of the subsidy.
During physical verification of 46 PMEGP units financed by the branch, involving sanctioned and disbursed loans totalling Rs 1.66 crore, no business units were found at the respective locations, the ACB said.
The findings indicated possible diversion of loan funds and subsidy and allegedly frustrated the objectives of the government scheme, it said.
The case has been registered under Section 13(1)(a) read with Section 13(2) of the Prevention of Corruption Act, 1988, as amended in 2018, and Sections 409 and 120-B of the IPC.
Further investigation in the case is underway, the ACB said.
