ED Files Chargesheet in Rs 3.54 Crore PHED Fraud Case in Srinagar

October 17, 2025

Srinagar: The Enforcement Directorate’s (ED) Srinagar Zonal Office has filed a prosecution complaint before the Special PMLA Court in connection with a ₹3.54 crore payment fraud in the Public Health Engineering Department (PHED) of Jammu and Kashmir.

Former Chief Engineer, Contractor Among Five Named

In an official statement, the ED said,

“The ED Srinagar Zonal Office has filed a prosecution complaint before the Special PMLA Court in the city against Ghulam Mohammad Bhat, the then Chief Engineer of Jammu and Kashmir’s Public Health Engineering Department (PHED), and four others — Rajnish Bal, Mohammad Amin Wani, Nisar Ahmad Bhat, and Imran Baba, a partner in M/s Baba Enterprises, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.”

The special court has issued pre-cognisance notices to all the accused in the case.

Misappropriation of Funds During Spare Parts Procurement

The investigation was launched following an FIR filed by the Anti-Corruption Bureau (ACB) Srinagar against Bhat and his associates for the alleged misappropriation of government funds.

According to the agency,

“The ED investigation revealed that the accused officials of PHED, in criminal conspiracy with M/s Baba Enterprises, misappropriated government funds during procurement of spare parts for water filtration plants, thereby causing wrongful loss to the public exchequer.”

The probe also found that the Departmental Procurement Committee, in collusion with Imran Baba, granted undue favours to M/s Baba Enterprises by awarding tenders without following due procedure, skipping the mandatory tendering process for additional procurement worth ₹2.30 crore, and failing to collect required security deposits.

Irregularities in Tendering and Payments

“Instead, Earnest Money Deposit of Rs 1 lakh was converted into security deposits. In second order, security deposit (two per cent of the value of second supply order) was again not taken,”
the ED statement said.

The agency added that instead of ₹7 lakh in security deposits, only ₹1 lakh was collected, while the delivery period was arbitrarily extended from 30 to 90 days.

Funds Diverted to Buy Srinagar Properties

“The ED investigation further revealed that M/s Baba Enterprises received Rs 3.54 crore from PHED and paid only Rs. 1.55 crore to the original supplier i.e. M/s Industrial Devices (India) Private Limited, New Delhi, and diverting the remaining Rs 1.56 crore, which was utilised for acquisition of immovable properties in Srinagar such as 18 marla land in Barinambal and 27.5 marla land in Hyderpora, Srinagar, and the ED has attached these immovable properties worth Rs 1.56 crore,”
the agency stated.

Old Scams Resurfacing Amid Renewed Accountability

Officials noted that during the peak years of militancy in Jammu and Kashmir, law and accountability in public services were severely undermined. Now, with the re-establishment of governance and transparency, long-buried financial frauds committed during that era are being unearthed and prosecuted.