SRINAGAR, Jun 11: The Central Bureau of Investigation (CBI) has registered a case against 19 private people, unknown officials of J&K Bank, and unidentified public servants in connection with alleged irregularities in sanctioning and diversion of loans under the Prime Minister’s Employment Generation Programme (PMEGP) in Jammu and Kashmir’s Bandipora district.
The PMEGP is a central sector scheme that offers financial assistance to create employment opportunities in rural as well as urban areas.
According to an FIR registered by the CBI’s last week, the case pertains to alleged criminal conspiracy, cheating, forgery, criminal breach of trust, and corruption in the sanctioning of multiple PMEGP loans at the J&K Bank branch in Sumbal from 2022 onwards.
The FIR stated that unknown bank officials allegedly entered into a conspiracy with the accused beneficiaries and private people to secure sanction of numerous PMEGP loans. The probe agency alleged that the loan amounts released in favour of beneficiaries were subsequently diverted to accounts of the accused through forged and fictitious invoices and bills.
The CBI said the alleged diversion of funds in connivance with the unknown public servants caused wrongful loss to the bank and public exchequer while resulting in corresponding wrongful gain to the accused persons and unknown public servants.
“This diversion of funds also prima-facie establishes embezzlement/misappropriation of public funds by the criminal misconduct of the unknown public servants,” the FIR said.
The case has been registered against 19 accused persons and unknown public servants of KVIB, KVIC, DIC, bank officials and private people under Sections 120-B, 409, 420, 468 and 471 of the Indian Penal Code and Section 13(1)(a) read with 13(2) of the Prevention of Corruption Act.
Investigation in the case has been entrusted to an inspector-rank officer of the CBI.