ED arrests Mangaldas Bandal in money laundering case: ‘Secured loans using farmers’ names from Pune bank’
The ED alleges that Bandal secured loans using the names of farmers and local businessmen, which he then used for personal gains.
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The ED, represented by special public prosecutors Sunil Gonsalves and R R Yadav, alleged that Bandal is obstructing the investigation by attempting to influence witnesses. (Express Archives) The Enforcement Directorate (ED) Wednesday arrested wrestler-turned-politician Mangaldas Bandal Wednesday in connection with the Shivajirao Bhosale Sahakari Bank money laundering case.
The ED alleges that Bandal secured loans using the names of farmers and local businessmen, which he then used for personal gains. A special court has remanded Bandal to ED custody until August 29.
In 2020, an FIR was filed in Pune accusing the bank’s elected board and others of cheating, following the discovery of a Rs 71.78 crore shortfall in the bank’s funds. The police alleged that depositor money was embezzled through irregular loans, resulting in 97 per cent of the loans becoming non-performing assets.
“To obtain loans, the accused (Bandal) used lands belonging to local farmers and villagers as mortgage properties. The value of these mortgaged lands was significantly inflated compared to market or fair value, as noted in the forensic audit report,” the ED stated. The agency claims that Bandal misused Rs 132.35 crore in principal amounts.
During searches at six locations, including three of Bandal’s residences in Pune district, the ED traced Rs 41.57 crore in loan transactions.
The funds were reportedly used to purchase a motor vehicle for Rs 80 lakh, construct a marriage hall for Rs 2.5 crore, and for other personal expenses.
The ED, represented by special public prosecutors Sunil Gonsalves and R R Yadav, alleged that Bandal is obstructing the investigation by attempting to influence witnesses. They claimed he advised a witness to avoid the ED office despite summons, suggesting he seek a postponement due to medical issues.
Bandal’s lawyers, Aabad Ponda and Shailesh Kharat, countered that there is no evidence of cheating or forgery, and thus the predicate offence and money laundering charges are unfounded. They noted that Bandal had been granted bail in the Pune case and that the loan amount has been repaid to the bank. Special Judge A.U. Kadam has granted the ED custody of Bandal until August 29.
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