30-07-2025
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.
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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.
