Srinagar: The Anti-Corruption Bureau (ACB) J&K has registered an FIR against Arvind Saini, the then Branch Head of J&K Grameen Bank, Branch Office Reban, Sopore, Baramulla, and Firdous Ahmad Sheikh, Business Correspondent, along with others, for alleged financial irregularities and misuse of official positions in the implementation of the Prime Minister’s Employment Generation Programme (PMEGP).

According to the ACB, the alleged irregularities occurred during 2021–2023 and involved the premature release and reversal of capital subsidy under PMEGP-sponsored schemes, in violation of the operational guidelines adopted by the bank through Circular No. 86 dated June 8, 2022.

The ACB said verification revealed that Arvind Saini, allegedly in conspiracy with beneficiary Firdous Ahmad Sheikh, prematurely released/reversed capital subsidy amounting to ₹41.17 lakh in 25 PMEGP loan accounts before completion of the mandatory lock-in period and without the requisite authorisation or adjustment letter from the implementing agency.

The agency further stated that six of these loan accounts had been sanctioned in favour of Business Correspondent Firdous Ahmad Sheikh and his family members, and were allegedly closed prematurely through adjustment of the subsidy.

The verification also found that 46 PMEGP units, involving sanctioned/disbursed loans amounting to ₹1.66 crore, were allegedly not found in existence during physical verification. The ACB said the findings indicated possible diversion of loan funds and subsidy, thereby frustrating the objectives of the PMEGP scheme.

Accordingly, FIR No. 05/2026 has been registered 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.

The ACB said further investigation in the case is underway.