ED seizes Kashmir properties in PMEGP scheme fraud probe

The Enforcement Directorate (ED) has initiated asset recovery proceedings in Kashmir, targeting properties allegedly acquired through misuse of the Prime Minister's Employment Generation Programme (PMEGP) scheme. An ED spokesperson confirmed that the agency has attached assets as it pursues investigations into the suspected diversion of scheme funds.

According to the ED's findings, the case involves systematic misappropriation of PMEGP loans through what officials describe as a criminal conspiracy. The investigation has identified involvement by multiple parties, including borrowers who received loans under the scheme, as well as officials from two branches of Jammu & Kashmir Bank—the Sumbal Branch and Gamud Gadkhuk Branch—along with other unidentified individuals.

The PMEGP, a flagship government initiative designed to promote entrepreneurship and generate employment, provides concessional loans to eligible applicants for setting up small businesses. The suspected diversion of these funds represents a significant breach of the scheme's objectives and governance framework.

The ED's action reflects intensified scrutiny of financial irregularities in employment generation programmes across India. Officials have not yet disclosed the total quantum of funds involved or the number of properties attached. The investigation remains ongoing, with authorities indicating that further action against other individuals and entities involved in the alleged conspiracy may follow.