Seva Vikas Co-op Bank Fraud: Misappropriation of loan linked to 126 NPA accounts under ED scanner | Representative Image
Mumbai: The Enforcement Directorate (ED)’s money-laundering probe against Pune’s Seva Vikas Co-operative Bank has revealed that its former Board of Directors had allegedly violated banking norms while sanctioning loans to ineligible shell entities, agency officials said. The agency has under its scanner loan funds worth Rs429.6 crore spread across 126 accounts declared as Non-Performing Assets (NPA). As per an audit report’s findings, these funds were allegedly misappropriated.
RBI cancelled the bank’s license last year
Last October, the Reserve Bank of India (RBI) had cancelled the bank’s licence on grounds that the lender did not have adequate capital and earning prospects. The bank had ceased to operate with effect from the close of business hours on Oct 10, 2022, the RBI said in a statement. Allegations had surfaced regarding irregularities in loan disbursement then.
The ED’s Friday searches at 10 premises – allegedly linked to three beneficiaries in Pimpri-Chinchwad and Pune – had led to the seizure of incriminating documents and valuables/cash worth over Rs3 crore.
During the search, the agency recovered gold and diamond jewellery worth Rs2.72 crore, Rs41 lakh cash and four high-end cars. Later, on a complaint by the ED, the bank’s ex-chairman Amar…
