The Enforcement Directorate (ED) has unveiled a staggering ₹494-crore fraud involving the Shivajirao Bhosale Sahakari Bank in Pune. This investigation reveals that key managerial personnel at the bank allegedly misused loan funds for personal gain, leading to a significant financial loss.
The Fraud Unfolded
The ED’s probe discovered that the accused individuals at the bank approved irregular loan cases, which led to 97% of these loans becoming Non-Performing Assets (NPAs). This mismanagement resulted in a loss of approximately ₹393 crore for the bank. The ED has alleged that these key managerial figures embezzled depositors’ money with a common intent to commit fraud and breached the trust of the bank’s customers. According to an ED source, “The Key Managerial Persons of the Bank treated the bank and its funds as their family concern and utilised the siphoned funds for their personal gains.”
Investigation Background
The investigation began following a first information report (FIR) registered on January 8, 2020, at Pune’s Shivajinagar police station. This FIR was based on a complaint from the bank’s statutory auditor. The ED’s inquiry revealed that fraudulent cheque-discounting facilities were used to artificially reduce the bank’s non-performing assets.
In March 2021, the ED arrested four individuals—A Bhosale, S Jadhav, T Padwal, and R Bhosale—who are currently in judicial custody. The ED filed a chargesheet in April 2021, outlining the alleged evidence of their involvement in money laundering.
Seizures and Arrests
During searches in February last year, the ED provisionally attached 23 properties worth ₹26.60 crore linked to the suspects. This attachment was confirmed by the Adjudicating Authority on July 19, 2023.
Recently, the ED arrested Mangaldas Bandal, the former chairman of Pune Zilla Parishad. Bandal is accused of taking loans using the names of local businessmen and farmers, leveraging his close ties with a senior official at Shivajirao Bhosale Sahakari Bank Limited. The loans were allegedly used for personal benefits, and the properties used as mortgage were inflated in value. The ED’s money trail has revealed that Bandal is suspected to have received around ₹41 crore in illicit proceeds. However, Bandal’s lawyers have denied these allegations, calling them unfounded.
Conclusion
The ED’s investigation into the Shivajirao Bhosale Sahakari Bank fraud underscores a serious case of financial misconduct involving high-level bank officials. As the probe continues, the full extent of the fraud and the accountability of those involved will be critical in addressing this massive financial scandal.
