Latest news with #VivekanandShankarPatil
NDTV
30-07-2025
- Business
- NDTV
Probe Agency Restitutes Rs 380-Crore Assets In Bank 'Fraud' Involving Ex-MLA
New Delhi: Attached assets worth Rs 380 crore have been restored to a designated Maharashtra government authority for distribution to the about 5 lakh "duped" depositors of a cooperative bank, controlled by a former MLA, as part of a money laundering proceeding, the Enforcement Directorate said on Wednesday. The case pertains to the Karnala Nagari Sahakari Bank Ltd. in Panvel where it was alleged that its erstwhile chairman, Vivekanand Shankar Patil, in connivance with other officials of the bank, "cheated" the lender and "siphoned off" the funds for private investments. Patil, a four-time MLA of the Shetkari Kamgar Paksha Party, was arrested by the ED in June 2021. The money laundering case of the ED stems from a February 2020 FIR filed by the Pune Police Economic Offences Wing (EOW). The police alleged in its chargesheet that the then chairman Patil and other officials of the bank prepared 63 "bogus" loan accounts using "forged" documents without following the RBI guidelines and standard banking norms, and "siphoned off" Rs 560 crore for personal gains, the federal probe agency said in a statement. The ED said its probe found that funds were "diverted" to various entities "controlled" by Patil and his relatives. "He (Patil) purchased various properties and assets using the funds siphoned off from the bank and these proceeds of crime were utilised for the purchase of immovable properties at different locations in Raigad district of Maharashtra," it said. These assets, worth Rs 386 crore, were attached by the ED under two provisional orders issued in 2021 and 2023. The ED also filed a chargesheet in August 2021 before a special PMLA court in Mumbai. The ED said the liquidator appointed by the RBI for the bank filed an application, under section 8(8) of the PMLA, before the court seeking restitution of assets. The ED gave its consent, the agency said. The court issued an order on July 22 directing the release of the property -- Karnala Sports Academy at Panvel -- to the liquidator and to put it up for auction, the ED said. The court also ordered the Competent Authority (Maharashtra Protection of Interest of Depositors) to "realise" the land at Posari, Raigad by auction for distribution amongst the depositors. "The bank had more than 5 lakh depositors having total deposits of Rs 553 crore, and they lost their hard-earned money. "In the larger interest of depositors and currently ongoing restitution efforts, ED took steps to expedite the process resulting in the restitution," the agency said. The PMLA provides for the process of restitution even before completion of the court trial in order to provide succour to the victims of frauds like bank loans and Ponzi scheme cheating. The fraud came to light after an audit was done at the instance of the Reserve Bank of India during 2019-20, when it was found that Patil was siphoning off funds from the bank through 67 "fictitious" loan accounts. The funds were sent to the loan accounts of entities/firms/trusts owned or controlled by Patil including Karnala Charitable Trust, Karnala Sports Academy and Karnala Mahila Readymade Garments Cooperative Society Limited, the agency had claimed in a statement issued in October 2023.
India Today
30-07-2025
- Business
- India Today
ED restitutes properties worth Rs 386 crore in Karnala Bank scam
The Enforcement Directorate(ED) in Mumbai has restituted immovable properties valued at Rs 386 crore to the Competent Authority under the Maharashtra Protection of Interest of Depositors (MPID) Act in connection with the financial fraud involving Karnala Nagari Sahakari Bank, Panvel. The restitution aims to compensate depositors who suffered financial losses due to a large-scale properties were earlier provisionally attached by the ED under Section 5 of the Prevention of Money Laundering Act (PMLA), following investigations that revealed the erstwhile chairperson, in collusion with other bank officials, orchestrated a fraud involving forged documents and bogus loan accounts. According to an FIR filed by the Economic Offences Wing (EOW), CID, Pune, on February 17, 2020, 63 fictitious loan accounts were created, through which Rs 560 crore was siphoned off for private investigations under PMLA established that the diverted funds were funneled into various entities linked to Vivekanand Shankar Patil and his relatives. The laundered proceeds were used to acquire immovable properties across Raigad District in Maharashtra. These assets, worth Rs 386 crore, were attached on August 17, 2021, and October 12, 2023. A prosecution complaint was filed on August 12, 2021, before the Hon'ble Special Court, PMLA, and the trial is currently ongoing. In response to a restitution application filed under Section 8(8) of PMLA by the RBI-appointed liquidator, the ED granted its consent. The PMLA Special Court, Mumbai, through its order dated July 22, 2025, directed the release of the property located at Karnala Sports Academy, Panvel, to the liquidator for auction. The court also instructed the Competent Authority, MPID, to auction land situated at Posari, Raigad, and distribute the proceeds among affected Nagari Sahakari Bank had over 5 lakh depositors with total deposits amounting to Rs 553 crore. These depositors lost their savings due to the fraudulent activities of the bank's management. In view of the scale of public loss and to expedite recovery for the victims, the ED has taken proactive steps resulting in the current restitution of assets.- Ends
Time of India
30-07-2025
- Time of India
ED starts restoring deposits in Karnala co-op bank fraud case
New Delhi: In the Karnala Nagari Sahakari (cooperative) Bank Ltd case in Panvel involving five lakh depositors who had lost their money due to laundering by bank authorities, the ED on Wednesday said it has initiated restitution of the lost deposits to the victims by auctioning properties attached in the scam worth over Rs 386 crore. "The Karnala Nagari Sahakari Bank Ltd, Panvel had more than five lakh depositors, having total deposits of Rs 553 crore, who have lost their hard-earned money. In the larger interest of depositors and currently ongoing restitution efforts, ED took steps to expedite the process resulting in the restitution," the agency said. In another case, the ED has started the process of restitution of properties worth Rs 30 crore to Indian Bank which had lost its money to Signet Products Pvt Ltd, Aurangabad, after the latter's account turned NPA. "Investigation revealed that the accused persons, along with public servants, entered into a criminal conspiracy, and through forgery cheated Andhra Bank, Andheri branch, causing a loss of Rs 73 crore," it said. The money was laundered to acquire personal properties by the accused, which were later attached by the agency, and are now being restituted. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai In the Karnala cooperative bank case, the ED has accused its former chairman, who had in connivance with other officials of the bank, cheated the bank and siphoned off funds for private investments. The Pune CID had also filed an FIR in the case in 2020. The chairman of the bank had prepared 63 bogus loan accounts using forged documents and siphoned off Rs 560 crore for personal gains, ED said. "Investigation revealed that the proceeds generated out of crime were diverted to various entities controlled by Vivekanand Shankar Patil and his relatives. He purchased properties (in Raigad district) using the siphoned off funds," the agency said. These properties worth Rs 386 crore were later attached by the agency. The restitution began with the liquidator appointed by RBI filing an application before the PMLA special court in Mumbai. The ED allowed the properties to be released to the liquidator and to put them for auction for further distribution of the proceeds among the depositors.
Indian Express
30-07-2025
- Business
- Indian Express
ED moves for restitution of attached properties of bank officials accused in Rs 560 crore fraud
Over 5 lakh depositors of Karnala Nagari Sahakari Bank, who lost their money due to the bank management's alleged Rs 560 crore fraud, are likely to soon get back their money as the Enforcement Directorate (ED) has restituted immovable properties worth Rs 386 crore to the competent authority for distribution of money among the depositors. The ED on Wednesday shared information on the restitution of the immoval properties to the competent authority. The central agency had provisionally attached assets under the Prevention of Money Laundering Act (PMLA) as the erstwhile chairman (of the bank) Vivekanand Shankar Patil, a three-term MLA from Panvel constituency from the Peasants and Workers Party of India, in connivance with other officials of the bank, siphoned off bank funds for private investments. The ED's money laundering case is based on the predicate offence registered by Panvel police in February, 2020, against Patil and 75 others. The accused persons involved the bank's vice chairman, CEO and 12 directors. In June 2021, the central agency arrested Patil in the case. It was alleged by the investigators that the chairman and other officials of the bank entered into criminal conspiracy and prepared 63 bogus loan accounts using forged documents without following the guidelines of RBI and standard banking norms and siphoned off Rs 560 crore for personal gains. When the ED carried out an investigation for money laundering, they found that the proceeds generated from the crime of forgery and cheating were diverted to various entities controlled by Patil and his relatives. 'He purchased various properties and assets using the funds siphoned off from Karnala Nagari Sahakari Bank Ltd. Such proceeds of crime (POC) were utilized for purchase of immovable properties at different locations in Raigad district,' the ED said in a statement. During their investigation, the ED identified and attached these properties worth Rs 386 crore in August 2021 and October 2023. The central agency has also filed a prosecution complaint (equivalent to chargesheet) on August 12, 2021, and the trial is underway. In the meantime, the liquidator appointed by RBI approached PMLA court for permission for restitution of properties. On July 22, the court passed an order to release the property at Karnala Sports Academy, Panvel, to the liquidator and put it for auction. The court also ordered the competent authority, MPID, to realise the land at Posari, Raigad by auction for distribution amongst the depositors, said the ED.
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Business Standard
30-07-2025
- Business
- Business Standard
Karnala Bank scam: ED restitutes assets worth ₹386 crore to aid depositors
The Directorate of Enforcement (ED) has restituted immovable properties worth Rs 386 crore to the Competent Authority under the Maharashtra Protection of Interest of Depositors (MPID) Act for the benefit of depositors of the defunct Karnala Nagari Sahakari Bank Ltd, Panvel. According to the ED, the assets, located across Raigad district in Maharashtra, were provisionally attached under Section 5 of the Prevention of Money Laundering Act (PMLA) following investigations into a Rs 560 crore fraud. The scam involved the bank's former chairman, Vivekanand Shankar Patil, who, along with other officials, allegedly created 63 bogus loan accounts using forged documents to siphon off funds into entities controlled by him and his relatives. The ED initiated its probe based on an FIR registered by the Economic Offences Wing (EOW), CID Pune, on February 17, 2020. The PMLA chargesheet accuses the accused of criminal conspiracy, forgery, and cheating in violation of Reserve Bank of India norms. The immovable properties were attached through two orders issued on August 17, 2021, and October 12, 2023. A prosecution complaint was also filed before the Special PMLA Court on August 12, 2021, and the trial is currently underway. In a major relief to depositors, the PMLA Special Court in Mumbai passed an order on July 22, 2025, allowing the release and auction of the attached properties — including the Karnala Sports Academy in Panvel and land at Posari, Raigad. The restitution application was filed by the liquidator appointed by the Reserve Bank of India under Section 8(8) of PMLA, to which the ED consented. Over five lakh depositors had placed their hard-earned savings — totalling Rs 553 crore — in the bank before the fraud came to light. The ED's action is aimed at enabling partial recovery for affected depositors. In a statement, the ED said it expedited the process in view of the scale of public loss and in the larger interest of depositors.
