JAMMU, SEPT 21: A major financial irregularity case has surfaced at J&K Grameen Bank’s Reban branch in Sopore, with the Anti-Corruption Bureau (ACB) registering an FIR against a former Branch Head, a Business Correspondent and others for allegedly manipulating PMEGP loans and prematurely releasing ₹41.17 lakh in capital subsidy in violation of mandatory guidelines.
The case has put 46 PMEGP-financed units involving ₹1.66 crore in sanctioned and disbursed loans under the scanner after ACB verification allegedly found that none of the business units existed during physical inspection.
The FIR Number 05/2026, names Arvind Saini, then Branch Head, J&K Grameen Bank, Branch Office Reban, Sopore, and Firdous Ahmad Sheikh, Business Correspondent, besides others.
The accused have been booked under Section 13(1)(a) read with Section 13(2) of the Prevention of Corruption Act, 1988, along with Sections 409 and 120-B IPC.
According to the ACB, Saini allegedly acted in a criminal conspiracy with beneficiary Sheikh and prematurely released or reversed ₹41,17,500 in capital subsidy across 25 PMEGP loan accounts before completion of the mandatory lock-in period.
The subsidy was allegedly adjusted without the required authorisation or adjustment letter from the implementing agency, paving the way for premature closure or adjustment of the loan accounts.
The verification has also thrown up a serious conflict-of-interest angle, with six of the 25 loan accounts allegedly sanctioned in favour of Business Correspondent Firdous Ahmad Sheikh and his family members before being prematurely closed through subsidy adjustment.
The ACB further alleged that the branch financed 46 PMEGP units involving ₹1,66,72,000, but physical verification found the purported business units non-existent.
The findings, according to the agency, indicate possible diversion of loan funds and subsidy and raise serious questions over the implementation of the employment-generation scheme.
The alleged irregularities were committed during 2021-2023, with the ACB finding violations of the PMEGP Operational Guidelines issued by the sponsoring agency and adopted by the bank through Circular No. 86 dated June 8, 2022.
The case exposes alleged systematic manipulation of subsidised loans meant to create employment opportunities, with the ACB now probing the wider role of beneficiaries and other persons involved.
Further investigation is in progress.
