CBI Takes Major Action in Jammu and Kashmir Loan Scam, FIR Filed Against 19 Individuals

Srinagar, June 12: The Central Bureau of Investigation (CBI) has taken significant action regarding a loan scam under the Prime Minister‘s Employment Generation Programme (PMEGP) in Bandipora district, Jammu and Kashmir. An FIR has been filed against 19 individuals, including private citizens, officials from J&K Bank, and various public servants associated with different government agencies.

According to officials, the case involves alleged irregularities and misuse of funds related to several loans sanctioned under the PMEGP at the J&K Bank branch in Sumbal since 2022.

The PMEGP is a crucial initiative by the central government aimed at providing financial assistance to create employment opportunities in rural and urban areas.

The FIR filed by the CBI last week outlines serious charges, including criminal conspiracy, fraud, forgery, criminal breach of trust, and corruption. The investigating agency claims that some unidentified bank officials allegedly colluded with beneficiaries and private individuals to approve a large number of PMEGP loans.

According to the FIR, the loan amounts issued in the names of beneficiaries were later transferred to the accounts of the accused through fake and fictitious bills and invoices. The CBI suggests that there may also be involvement from some unidentified government employees in this entire scheme.

The agency has alleged that this purported conspiracy caused financial losses to the bank and the government treasury, while the accused and some unidentified public servants gained undue benefits. The CBI’s preliminary investigation indicates that this case points to the embezzlement and misuse of public funds.

In addition to the 19 accused, officials from the Khadi and Village Industries Board (KVIB), Khadi and Village Industries Commission (KVIC), and District Industries Centre (DIC) are also under investigation.

The CBI has registered the case under various sections, including relevant provisions of the Prevention of Corruption Act. A detailed investigation is currently underway.