SRINAGAR: The Anti-Corruption Bureau (ACB) JK has registered an FIR against the then Branch Head of JK Grameen Bank, Reban branch in Sopore, and a Business Correspondent and others over alleged financial irregularities in the premature release of capital subsidies under the Prime Minister’s Employment Generation Programme (PMEGP).
The case, FIR No. 05/2026, has been registered against Arvind Saini, then Branch Head of JK Grameen Bank, Branch Office Reban, Sopore, Firdous Ahmad Sheikh, Business Correspondent, and others 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.
According to the ACB, a verification found that Saini, allegedly in conspiracy with Sheikh, prematurely released or reversed capital subsidy amounting to Rs 41.17 lakh in 25 PMEGP loan accounts before completion of the mandatory lock-in period.
The ACB said the subsidy was adjusted without the requisite authorisation or adjustment letter from the implementing agency, allegedly facilitating the closure or adjustment of the concerned loan accounts in violation of PMEGP operational guidelines.
The guidelines had been issued by the sponsoring agency and adopted by the bank through Circular No. 86 dated June 8, 2022, the ACB said.
The verification further found that six of the 25 loan accounts had been sanctioned in favour of Business Correspondent Firdous Ahmad Sheikh and his family members and were allegedly closed prematurely through adjustment of the subsidy.
The ACB said physical verification of 46 PMEGP units financed by Saini found that none of the business units existed at the time of verification.
The loans involved a total sanctioned and disbursed amount of Rs 1.66 crore, according to the anti-corruption agency.
The ACB said the findings indicated possible diversion of loan funds and subsidy and had frustrated the stated objective of the PMEGP scheme.
Further investigation in the case is under way, the ACB said.
