ED probe reveals illegal loans sanction in bank fraud

ED's probe into Shivajirao Bhosale Bank revealed loan fraud (2007-2013), leading to asset seizures of ₹111 crore and charges against key figures.

MUMBAI: The money-laundering probe by the Enforcement Directorate (ED) into an alleged fraud at the Shivajirao Bhosale Sahakari Bank Limited (SBSBL) revealed irregularities in the disbursement of loans during 2007-2013. The probe found that several fraudulent and ineligible loan applications were allegedly sanctioned, according to sources.

ED probe reveals illegal loans sanction in bank fraud

ED had initiated the investigation based on a First Information Report (FIR) registered by the Shivajinagar police station, Pune, against Anil Shivajirao Bhosale, Suryaji Pandurang Jadhav and a few others. Subsequently, Pune Police’s Economic Offences Wing submitted its chargesheet and a supplementary chargesheet in the case against the accused.

The agency’s probe revealed irregularities in the manner ineligible loan applications were approved, and it is now examining the role of a few officials, ED sources said. Under the scanner is Hanumant Kemdhare, the then loan superintendent, who allegedly played a crucial role in sanctioning fraudulent loans from 2007 to 2013 and recommended loans that were otherwise ineligible, the sources said.

The agency’s probe also revealed that another person, Mangaldas Bandal, had allegedly availed loans from SBSBL in the names of associated concerns of local businessmen and farmers by leveraging his close association with the then chairman of the SBSBL. Bandal allegedly also utilised the land plots of local farmers as mortgaged properties, thereby inflating their values, which came out in a forensic audit.

The agency had recently attached assets worth ₹85 crore in Pune, Solapur and Ahmednagar, belonging to Bandal, Khemdhare, Satish alias Yatish Jadav and their family members under the provisions of the Prevention of Money Laundering Act. ED had earlier attached properties worth ₹26 crore of Anil Bhosale and others in February 2023. It had also submitted a chargesheet against Bhosale, the chairman of SBSBL, and other bank officials before a special court in Mumbai.