Properties of Ex-MLA Vivekanand Patil to Be Auctioned in Rs.512 Crore Cooperative Bank Fraud Case

A special anti-money laundering court has ordered the auction of properties belonging to former MLA Vivekanand Shankar Patil to help repay the dues of creditors and depositors of Karnala Nagari Sahakari Bank, a cooperative bank based in Panvel, Raigad district. The bank is at the center of a major financial scam involving alleged fraud of over ₹512 crore.

What Properties will be auctioned?

The properties to be auctioned include a multi-acre sports academy and a plot of land in Panvel. These assets had earlier been seized by investigation agencies during the probe into the large-scale fraud. The main accused in the case, Vivekanand Patil, is a former three-time MLA from Panvel and had also served as a legislator from Uran. He was elected from the Peasants and Workers Party of India.

87 Properties Attached Under MPID Act

In connection with the fraud, a total of 87 properties—including some inherited assets of Patil—were attached under the Maharashtra Protection of Interest of Depositors (MPID) Act by the Economic Offences Wing (EOW) of Navi Mumbai police. The Enforcement Directorate (ED), which is conducting a parallel money laundering investigation, also attached several of the same properties.

Court Approves Auction to Repay Depositors

On Tuesday, Special PMLA Judge Satyanarayan Navander allowed the plea filed by the liquidator of Karnala Bank seeking release of the two attached properties for auction. The liquidator stated that the funds raised from the auction would help pay off the bank’s creditors, especially the depositors who lost their savings in the scam.

All stakeholders, including the accused, gave their no objection to the auction. Considering the unanimous agreement, the court made the attachment of the two properties final and ordered that the auction process begin immediately. The judge emphasized that the decision was made in the best interest of depositors.

ED Probe Based on 2020 FIR

The Enforcement Directorate’s investigation is based on an FIR registered in February 2020 by the Navi Mumbai EOW against Patil and 75 others. The complaint alleged massive financial irregularities amounting to ₹512.54 crore in the Karnala cooperative bank. The ED has since been probing how funds were siphoned and laundered.

With this court order, the auction process is set to begin soon, offering some hope for justice and recovery to the thousands of depositors impacted by the scam.