INDIA. Mumbai: Directorate of Enforcement (ED) has apprehended Sagar Maruti Suryawanshi in connection with a Rs 429 crore fraud at the Seva Vikas Co-operative Bank in Pune, under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
Suryawanshi, who was arrested on June 15, has been placed in ED custody until June 26, as stated in an official release on Tuesday.
The fraud resulted in 124 loan accounts of the bank becoming Non-Performing Assets (NPA), leading to the bank’s bankruptcy and causing losses to numerous small depositors. Ultimately, over 92% of the loan accounts turned NPA, culminating in the collapse of the bank. On October 10, 2022, the Reserve Bank of India canceled the bank’s license, effectively ceasing its banking operations.
The ED launched an investigation based on multiple First Information Reports (FIRs) filed in Pune, Maharashtra, against loan defaulters, including Amar Mulchandani, the bank’s former chairman, and other directors and officials.
The investigation revealed that Mulchandani, who also serves as a promoter of the “Rosary Education Group,” ran the bank as a family-owned enterprise, disregarding prudent banking practices. Loans were sanctioned in exchange for substantial kickbacks to a select few individuals.
Suryawanshi and his relatives defrauded the bank of approximately Rs 60.67 crore across 10 NPA loan accounts. They acquired loans in collusion with Mulchandani, despite lacking sufficient creditworthiness and repayment capability. Previously, properties valued at Rs 122.35 crore were provisionally attached in connection with this case. Mulchandani was arrested by Pune police last year but was granted bail after spending six months in jail. He joined the BJP in 2016.
Suryawanshi, also known as Rajabhau Suryawanshi, was previously arrested in October 2021 by the Pune Crime Investigation Department (CID) in relation to other FIRs registered against him in Pune.
When the fraud came to light, the Joint Registrar of Co-Operatives in Maharashtra conducted an audit, which unveiled gross fraud and misappropriation of Rs 429.6 crore across 124 NPA loan accounts by the bank’s management.
Earlier, the ED arrested two of its staff members, Yogesh Wagule and Vishal Kudekar, for leaking information about their actions to members of the Mulchandani family and accepting bribes from Bablu Sonkar, an associate of Mulchandani.
Furthermore, in January of this year, the ED filed an FIR against Mulchandani and five of his family members, charging them with obstructing government officials from performing their duties.
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