Seva Vikas Bank fraud: ED attaches assets worth Rs 122 cr, 47 immovable properties of BJP’s Amar Mulchandani, others

The ED’s investigation into the money laundering aspect of the Seva Vikas Cooperative Bank loan fraud case has revealed that the bank was run like a family proprietorship without following any prudent financial norms and loans were sanctioned without viable security and without ascertaining the credit-worthiness of the applicants in return for massive kickbacks. More than 92 per cent of the loan accounts turned into non-performing assets (NPA) and the bank went bankrupt, the agency had stated.

In January 2023, the ED had conducted searches at 10 locations linked to the accused and seized gold and diamond jewellery worth Rs 2.72 crore, cash worth Rs 41 lakh, four luxury cars, digital devices and various incriminating documents from the residence and office premises of Mulchandani.

Later, the agency officials arrested one Babu Sonkar, an employee of Mulchandani as he was frequently lurking around the ED office premises. On being caught he admitted that he was tasked by Mulchandani family to threaten the witnesses and to pass on bribe amounts to 1 Data Entry Operator and 1 contingent staff working in ED office. The accused staff of ED and the contractual staff of ED have admitted that they were passing sensitive information to Bablu Sonkar. Accordingly, they have also been arrested under PMLA, said an ED official.

Mulchandani and five of his family members were arrested by Pimpri police after the ED officials filed an FIR against them for trying to tamper with evidence and trying to obstruct government servants from discharging their duties. The FIR was filed under section 353 of the IPC. The Pimpri-Chinchwad unit of the BJP had earlier distanced itself from the ED’s action on Mulchandani.