Seva Vikas Co-operative Bank fraud case: Depositors to get lost money after liquidation of former bank chairman’s properties worth Rs 45 crore

On Friday, the ED said that an application under Section 8 (8) of the Prevention of Money Laundering Act (PMLA) was moved by the liquidator of the co-operative bank before the special PMLA court.

In the larger interest of depositors and currently ongoing restitution efforts, the ED took a pragmatic view and supported the application moved by the liquidator of the bank by filing an affidavit before the special court to hand over the properties to them so that the same can be restituted to the legitimate bona fide depositors.

Following the ED’s affidavit, the special court ordered the restitution of immovable properties valued at Rs. 45.26 crore belonging to Sagar Suryawanshi Group to liquidator of Seva Vikas Co-operative Bank.

Earlier, investigation carried out by ED in the case revealed that former chairman of Seva Vikas Co-operative Bank Amar Mulchandani—in connivance with others—allegedly favoured borrowers and sanctioned loans to them, neglecting their credit worthiness.

By means of fraud, in collusion with other accused, Sagar Suryawanshi availed 10 loans amounting to Rs. 41.42 crore in his name and in the name of his family members/entities. He and his family members used these loan funds to purchase various properties, said the ED.

Further, on perusal of loan accounts, it was revealed that the loans funds were diverted to other accused and their related companies/ firms. The funds so diverted to other accused were mostly withdrawn in cash or used for personal enrichments other than the intended purpose.

Resultantly, the loans obtained by the accused and his family members/entities turned into non-performing assets (NPA) on account of wilful default with outstanding of Rs. 60.67 crore as on March 31, 2021, said the ED.

Properties of Suryawanshi Group were attached under Section 5 of PMLA and a prosecution complaint was filed before the special PMLA court on May 19, 2023.

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