Bank of Maharashtra reinstates its CEO, executive director after clean chit in fraud casehttps://indianexpress.com/article/business/banking-and-finance/bank-of-maharashtra-reinstates-its-ceo-executive-director-after-clean-chit-in-fraud-case-5432152/

Bank of Maharashtra reinstates its CEO, executive director after clean chit in fraud case

Marathe, Gupta and former CEO and MD Sushil Muhnot were arrested by the Pune City Police on June 20 in connection with the Rs 2,043-crore fraud case against Pune-based DSK Group.

Bank of Maharashtra, BOM's CEO, Ravindra Prabhakar Marathe, Rs 2,043-crore fraud case against DSK Group, Pune police, Maharashtra, Mumbai News, Indian Express 
Bank of Maharashtra (BoM) on Friday restored the functional responsibilities of its MD and CEO. (Source: File Photo)

The Bank of Maharashtra (BoM) on Friday restored the functional responsibilities of its MD and CEO, Ravindra Prabhakar Marathe, and executive director Rajendra Kumar Gupta.

Marathe, Gupta and former CEO and MD Sushil Muhnot were arrested by the Pune City Police on June 20 in connection with the Rs 2,043-crore fraud case against Pune-based DSK Group. Police had alleged that the accused BoM officials did not follow rules while giving a loan to the Dream City project of DSK Developers Ltd in Pune’s Fursungi.

Following their arrest, Bank of Maharashtra had divested Marathe and Gupta of all their powers. On October 21, Pune police had filed a closure report, saying the officials had sanctioned loans as part of “normal banking transaction”.

“We have filed a closure report under Section 169 of the CrPC as we haven’t found any evidence against the three bank officials,” Pune Police Commissioner K Venkatesham had said.

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However, a court hearing in this matter is expected to take place on Saturday, when Special Public Prosecutor Pravin Chavan will put forward his say. The Indian Express had reported recently that Chavan had raised doubts on the way police had filed a closure report in the case and said that he had not been consulted before it was filed.

A press release issued by the BoM stated that the functional responsibilities of Marathe and Gupta were restored in a board meeting held on Friday.

“The bank’s board, in its meeting held on June 29, 2018, had divested them of their powers. The restoration of functional responsibilities to Marathe, MD and CEO, and Gupta, ED, by the board is a welcome move for the bank, which has also shown good results in its quarter 2 of financial year 2018-19 after 10 quarters,” the release stated.