The enforcement Directorate has arrested three individuals in Seva Vikas Cooperative Bank fraud case. ED has initiated investigation on the basis of multiple FIRs registered by Pune Police on the basis of complaints of the Bank and the Audit conducted by the Registrar of Cooperative Societies.
It has alleged large-scale fraud and misappropriation of public funds causing a loss of 429 Crore rupees to the Seva Vikas Cooperative Bank. The agency has arrested Bablu Sonkar, close associate of ex-Chairman Amar Mulchandani, and two staff working in the ED Office.
The investigation revealed that the Cooperative Bank was being run like a family proprietorship without following any prudent financial norms and loans were being sanctioned without any viable security. ED said, more than 92 percent of the loan accounts turned NPA and now the Bank has gone bankrupt.
Earlier Enforcement Directorate (ED) seized gold and diamond jewellery worth ₹2.72 crore, ₹41 lakh cash, 4 high-end cars, digital devices and various incriminating documents during searches at ten locations associated with Pune-based Seva Vikas Co-operative Bank fraud.
The Reserve Bank of India (RBI) on October 10 cancelled the banking licence of Pune-based Seva Vikas Co-operative Bank as the lender did not have adequate capital and cannot pay its present depositors in full.