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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.
