Assets worth over ₹100 crore attached in Nagar Urban Cooperative Bank scam

The order, issued on March 18 under the Maharashtra Protection of Interest of Depositors (MPID) Act, was received at the district collectorate on Monday

In an escalation of action against financial irregularities, the state government has ordered the attachment of assets worth over ₹100 crore belonging to former directors and officials of the now-defunct Nagar Urban Multi-State Co-operative Bank. The move is being seen as a significant step in the investigation into the multi-crore scam that led to the bank’s collapse and affected thousands of depositors in the city.

The move is being seen as a significant step in the investigation into the multi-crore scam. (REPRESENTATIVE PIC)

The order, issued on March 18 under the Maharashtra Protection of Interest of Depositors (MPID) Act, was received at the district collectorate on Monday. Officials said that 72 properties linked to 28 individuals — including former directors and senior officials of the bank — have been attached. Among the individuals whose properties have been attached are late MP Dilip Gandhi; the attached assets include those linked to his wife Saroj Gandhi, sons Surendra and Devendra, and daughters-in-law Pragati and Deepti Gandhi. Former chairmen Ashok Kataria and Anil Kothari; directors and officials Ajay Bora, Manesh Sathe, Girish Lahoti, Navneet Surpuria, Dinesh Kataria, Shailesh Munot and Kedar Lahoti; and staff members Mahadev Salve, Satish Rokade and Rajendra Dole are also among the individuals whose properties have been attached. Several borrowers allegedly involved in the diversion of funds have been brought under the attachment. This is among the largest such actions in the state in connection with the collapse of a cooperative bank.

The state home department, led by secretary Anup Kumar Singh, has appointed the sub-divisional magistrate (SDM) of Ahilyanagar as the competent authority to manage the attached assets through a government gazette notification. The district administration has also been directed to formally record these properties to prevent any unauthorised transactions. The notification, published in the Maharashtra government gazette (extraordinary) on March 18, states that the bank, located on Bank Road in Ahmednagar, had accepted deposits from members and the public with assurances of repayment along with returns. However, the institution and its office-bearers — including the chairman, directors, managers and employees — allegedly failed to repay the depositors after maturity.

Based on complaints, offences were registered at Kotwali police station under relevant sections of the MPID Act. The government noted that the financial establishment and its officials appeared unable to repay the depositors, raising concerns over safeguarding public funds. A criminal case was registered in 2022 at Kotwali police station following a complaint by Rajendra Gandhi of the Bank Bachav Kruti Samiti. The probe, later taken over by the economic offences wing (EOW), found suspected financial irregularities to the tune of ₹291 crore, pointing to mismanagement and alleged siphoning of funds. Following the findings, the bank’s licence was revoked in 2023 and a liquidator, Ganesh Gaikwad, was appointed to oversee the winding-up process.

The latest action of attachment of assets, according to officials, is aimed at recovering funds and fixing accountability. Furthermore, the authorities have imposed strict restrictions on the attached properties. They cannot be sold, transferred or gifted until a final court order. Revenue officials have been directed to flag these assets in records, and even properties transferred after the scam surfaced have been included in the attachment.

Members of the Bank Bachav Kruti Samiti have welcomed the move, calling it a major step towards justice for depositors who lost their savings. They said that the action sends out a strong message that those responsible for financial fraud will be held accountable. Officials added that the investigation is ongoing and more assets may be attached as the money trail is traced.

When contacted by Hindustan Times, district collector Pankaj Ashiya said, “I will take necessary information from the concerned department and update.”