Srinagar, September 21: The Jammu and Kashmir Anti-Corruption Bureau (ACB) has registered an FIR against a former J&K Grameen Bank branch head, a Business Correspondent and others over alleged financial irregularities and premature release of capital subsidies under the Prime Minister’s Employment Generation Programme (PMEGP).
According to the ACB, the alleged irregularities took place between 2021 and 2023 at the J&K Grameen Bank branch in Reban, Sopore, Baramulla.
The agency has named Arvind Saini, the then Branch Head of the Reban branch, and Business Correspondent Firdous Ahmad Sheikh, along with others, in the case.
The ACB said its verification found alleged violations of PMEGP operational guidelines adopted by the bank through Circular No. 86 dated June 8, 2022.
According to the agency, capital subsidy amounting to ₹41.17 lakh was allegedly released or adjusted prematurely in 25 PMEGP loan accounts before completion of the mandatory lock-in period and without the required authorisation or adjustment letter from the implementing agency.
The ACB alleged that the premature adjustment facilitated the closure or adjustment of loan accounts in violation of prescribed PMEGP procedures.
The agency further stated that six of the loan accounts were sanctioned in favour of Business Correspondent Firdous Ahmad Sheikh and his family members and were allegedly closed prematurely through adjustment of the subsidy amount.
During a physical verification of PMEGP-funded units, the ACB said it found that 46 units financed through the branch were not present at the locations recorded in the loan documents.
The sanctioned and disbursed amount involved in these 46 cases was approximately ₹1.66 crore.
The agency said the alleged non-existence of the units raised concerns over possible diversion of loan funds and subsidies and undermined the objectives of the PMEGP scheme.
The ACB has registered FIR No. 05/2026 under Section 13(1)(a) read with Section 13(2) of the Prevention of Corruption Act, 1988, as amended in 2018, along with Sections 409 and 120-B of the Indian Penal Code.
Further investigation into the matter is underway, the ACB said.
