After allegations of multi crore fraud in Muslim Co-op Bank in Pune, RBI seeks explanation from bank chairman | pune news | Hindustan Times
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After allegations of multi crore fraud in Muslim Co-op Bank in Pune, RBI seeks explanation from bank chairman

The two directors and a section of bank members, depositors and concerned citizens will be staging a protest against the alleged mismanagement of finances at the Muslim Co-operative Bank on Monday (October 9).

pune Updated: Oct 08, 2017 23:42 IST
Nadeem Inamdar
Shikilkar in a media release said that as a concerned director of the bank, it was his moral duty to register an official complaint with the Reserve Bank of India (RBI) and Co-operatives Commission about an alleged large-scale fraud worth ₹100 to ₹110 crore, which has taken place in the bank during the last decade.
Shikilkar in a media release said that as a concerned director of the bank, it was his moral duty to register an official complaint with the Reserve Bank of India (RBI) and Co-operatives Commission about an alleged large-scale fraud worth ₹100 to ₹110 crore, which has taken place in the bank during the last decade. (AP FILE PHOTO)

Following allegations of a ₹100 crore fraud in Muslim Co-operative Bank, the Reserve Bank of India (RBI) along with the state cooperative department has sought an explanation from the chairman of the bank.

The action comes after two directors of the bank,Imtiyaz Shikilkar and Mohammad Iqbal Shaikh alias SM Iqbal, filed a complaint with the Reserve Bank of India (RBI) and Co-operatives Commission about an alleged fraud in the bank.

The two directors and a section of bank members, depositors and concerned citizens will be staging a protest against the alleged mismanagement of finances at the Muslim Co-operative Bank on Monday (October 9). The protest will be staged outside the bank’s office in Bhavani Peth on Monday (October 9).

Shikilkar in a media release said that as a concerned director of the bank, it was his moral duty to register an official complaint with the Reserve Bank of India (RBI) and Co-operatives Commission about an alleged large-scale fraud worth ₹100 to ₹110 crore, which has taken place in the bank during the last decade. The bank is currently headed by prominent educationist PA Inamdar, who runs the famous Azam Campus Group of educational institutes with over 20,000 students on its rolls.

The duo in their complaint alleged that bank chairman, Inamdar, kept the directors in the dark regarding most crucial bank decisions especially funds sanction. “Inamdar has siphoned off the money in the name of paying the security guards at 23 branches of the bank. Our investigation has revealed that payments between ₹70 lakh - ₹80 lakh per year were made for non-existent security guards. Also, his son’s firm has been favoured in the tendering process to buy the bank’s software and hardware where an amount between ₹2 to ₹3 crore has been spent,” they alleged and demanded a thorough investigation into the case.

When contacted Inamdar told Hindustan Times, “The present allegations against me and the bank are false and defamatory made with malafide intent. There are sharp differences between two Baramati-based bank directors and current allegations are politically motivated aimed at tarnishing the image of the bank. The complainants will have to face legal consequences for the false allegations they are making. They had complained to the Registrar and appropriate authorities. The inquiry is on and we are complying with the information sought by the concerned authorities. So why are they protesting?” he questioned.

Inamdar said that Shikilkar was also the chairman of the bank for the first two years while he has been the chairman for the past two years. “Why was he silent all these years and did not raise his objections during that time. The bank is on sound footing with deposits worth ₹650 crore, ” he said. Refuting the allegations made against his son, he said that there was nothing illegal in the tendering and that it was done according to the law.

Some of the main allegations include ₹110 crore fraud during the past 10 years. 50 per cent of incentives and adhoc amount given to employees is taken back by the bank. Yearly payment between ₹70-₹80 lakh in the name of non-existent security guards siphoned each year. Favouritism in allotting the bank’s hard and software tender worth between ₹2 to ₹3 crore. New shares allocated as against illegal payment between ₹8,000 to ₹10,000.

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The cantonment police had filed an FIR against the Pune Muslim Co-operative Bank director Azim Gudakuwala and two others for physically assaulting and issuing threats to another bank member Javed Shikilkar (52), a resident of Baramati last month.He is the younger brother of Imtiyaz Sikilkar and the incident took place during the general body meeting.

According to the First Information Report (FIR) lodged with the police, Gudakuwala and two others, who have been identified as Akhtar Peerzade and Shahbaz Chand Shaikh physically assaulted and pushed Javed Shikilkar who wanted to communicate his views regarding the irregularities in the bank.

Another non-cognisable complaint has been lodged by the bank director Imtiaz Shikilkar against rival director Gudakuwala, Peerzade and Shahbaz Shaikh alleging threats and intimidation by the suspects. A cross complaint was also registered by the rival faction against Shikilkars.