Srinagar, June 11 (IANS) The Central Bureau of Investigation (CBI) has registered a case against 19 people in connection with the Prime Minister’s Employment Generation Programme (PMEGP) loan fraud case in Jammu and Kashmir’s Bandipora district, officials said.
Officials said on Thursday that the CBI has registered a case against 19 private individuals, some officials of J&K Bank and certain public servants in connection with alleged irregularities in the sanctioning and diversion of loans under the Prime Minister’s Employment Generation Programme (PMEGP) in Bandipora district.
The PMEGP is a Central Sector Scheme that offers financial assistance to create employment opportunities in both rural and urban areas.
According to an FIR registered by the CBI 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 individuals to secure the sanction of numerous PMEGP loans.
The CBI said that the loan amounts released in favour of beneficiaries were subsequently diverted to the accounts of the accused through forged and fictitious invoices and bills.
The agency said the alleged diversion of funds, in connivance with unknown public servants, caused a wrongful loss to the bank and the public exchequer while resulting in corresponding wrongful gains for the accused persons and unknown public servants.
“This diversion of funds also prima facie establishes embezzlement/misappropriation of public funds through the criminal misconduct of the unknown public servants,” the FIR said.
The case has been registered against 19 accused persons and some public servants of KVIB, KVIC and DIC, besides bank officials and private individuals, under Sections 120-B, 409, 420, 468 and 471 of the Indian Penal Code and Section 13(1)(a), read with Section 13(2), of the Prevention of Corruption Act.
–IANS
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