Srinagar, Jammu and Kashmir – The Anti Corruption Bureau (ACB) has registered a First Information Report (FIR) against a former branch head of the Jammu and Kashmir Grameen Bank and others in connection with significant financial irregularities. The case involves the premature release of capital subsidy under sponsored schemes, primarily the Prime Minister’s Employment Generation Programme (PMEGP), during the period of 2021-2023.
Information was available with The Chenab Times indicating that the FIR has been filed against Arvind Saini, who served as the Branch Head at the J&K Grameen Bank’s Reban branch in Sopore, Baramulla district, and Firdous Ahmad Sheikh, identified as a Business Correspondent, along with other unnamed individuals. These actions are alleged to have violated the operational guidelines of the PMEGP, as adopted by the bank.
Sources within the ACB revealed that during a verification process, it was discovered that Saini, in alleged collusion with Sheikh, facilitated the premature release of capital subsidy amounting to Rs. 41,17,500/-. This sum was distributed across 25 PMEGP loan accounts before the mandatory lock-in period had expired. Crucially, these releases occurred without the necessary authorization or adjustment letters from the implementing agency, thereby facilitating the unlawful closure or adjustment of the concerned loan accounts.
The guidelines of the PMEGP scheme are designed to foster business development and entrepreneurship by providing financial assistance and subsidies. A key component involves a lock-in period for the subsidy, ensuring that the sanctioned businesses remain operational for a stipulated duration before the funds are fully released and utilized for loan closure.
Further details emerging from the investigation suggest a pattern of non-compliance and potential fraud. It has been established that out of the 25 loan accounts where premature subsidy releases occurred, six were sanctioned in favour of Firdous Ahmad Sheikh himself and members of his family. These accounts were subsequently closed prematurely through the adjustment of the subsidy, bypassing standard procedures.
The ACB’s verification also uncovered that in 46 PMEGP units financed through the Reban branch, where Arvind Saini was the Branch Head, no actual business units were found to be in existence during physical inspections. These units involved a sanctioned and disbursed amount of Rs. 1,66,72,000/-, suggesting a potential diversion of loan funds and subsidies. This aspect of the investigation points towards a broader conspiracy aimed at frustrating the objectives of the PMEGP scheme.
Consequently, the ACB has registered FIR No. 05/2026 under relevant sections of the Prevention of Corruption Act, 1988 (as amended in 2018) and Sections 409 and 120-B of the Indian Penal Code. The implicated individuals, Arvind Saini and Firdous Ahmad Sheikh, are facing charges related to criminal conspiracy, cheating, and criminal breach of trust by a public servant.
The investigation into the matter is ongoing, with the ACB pursuing further leads to uncover the full extent of the alleged financial irregularities and identify any other individuals involved in the scheme.
The Chenab Times News Desk