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