By Divyesh Singh: The Enforcement Directorate (ED) arrested one Sagar Maruti Suryawanshi, in the Pune-based Seva Vikas Co-operative Bank fraud case. Sagar and his relatives are accused of defrauding the bank of Rs Rs 60.67 crore in 10 NPA (non-performing assets) loan accounts.

He was booked under the Prevention of Money Laundering Act (PMLA) act.

The co-op bank suffered a loss of nearly Rs 430 crore, as its Directors and Chairman are responsible for giving out fraudulent loans which later turned into NPA (Non Performing Assets).

Also Read: Enforcement Directorate searches in Ahmedabad related to illegal trade, crypto exchange

WHAT IS THE BANK FRAUD CASE?

An FIR was filed against a local police station in Pune, against Vinay Aranha and others in a bank load fraud case. Subsequently, an audit of the bank, found gross fraud and misappropriation of Rs 429.6 Crore across 124 NPA Loan accounts. Based on this audit report, additional FIRs were registered against the loan beneficiaries and the bank management, including its ex-Chairman Amar Mulchandani.

In March, the ED had arrested two of its staffers working on contract at its Mumbai office and a “close associate” of Mulchandani for allegedly sharing “sensitive” information of this investigation in exchange for a bribe.

Also Read: ED issues notices to 2 senior executives of Xiaomi for FEMA violations of Rs 5,551 crore

RBI ACTION ON THE BANK

According to the ED, more than 92 per cent of the loan accounts had turned into NPAs, which ultimately led to the collapse of the bank and the RBI later cancelling its license.

INVESTIGATION FINDINGS

An ED investigation has established that Amar Mulchandani treated public deposits in the bank like his “personal fiefdom” and violated all prudent banking norms to illegally sanction loans to his favored borrowers in an arbitrary manner.

He took bribes with 20 per cent commission of the sanctioned loan amounts. He made his family members Directors in the bank with a clear motive to have brute majority on the Board of Directors to sanction loans as per his whims and fancies.

Assets worth Rs 122.35 crore have been provisionally attached in this case till now, the agency said.

Also Read: Chhattisgarh: ED nabs steel firm staffer wanted in liquor scam during his mother’s funeral