ED attaches properties worth ₹122.35 cr in SVC Bank fraud

It was alleged that the test audit, conducted by Rajesh Jadhawar, joint registrar, co-operation department of the bank, revealed a misappropriation of ₹429.57 crore, involving 124 NPA loan accounts of SVC Bank

To tighten the noose around prime-accused Vinay Aranha and his associates in Seva Vikas Coop (SVC) bank fraud, the Enforcement Directorate (ED) has attached 47 immovable properties and assets worth ₹122.35 crore belonging to Amar Mulchandani, Vivek Aranha, Sagar Suryawanshi, and their family members in the ₹429 crore fraud case.

The ED conducted up to ten raids in Pune and Pimpri-Chinchwad in January this year as part of the SVC fraud investigation under the Prevention of Money Laundering Act (PMLA), 2002. (REPRESENTATIVE PHOTO)

The agency noted in its investigation that in two of Aranha’s loans from SVC Bank, they had mortgaged the property, which had previously been sold, and the loan account was deemed a non-performing asset (NPA).

It was alleged that the test audit, conducted by Rajesh Jadhawar, joint registrar, co-operation department of the bank, revealed a misappropriation of ₹429.57 crore, involving 124 NPA loan accounts of SVC Bank.

The ED conducted up to ten raids in Pune and Pimpri-Chinchwad in January this year as part of the SVC fraud investigation under the Prevention of Money Laundering Act (PMLA), 2002. Amar Mulchandani, the ex-chairman of SVC Bank, Vinay Aranha, and Sagar Suryawanshi, a victim of the scam, had their homes and offices searched.

Based on a predicate FIR filed at Vimantal Police Station, the ED launched a PMLA probe against Aranha and others for loan fraud. The ED added in its statement, “Subsequently, Joint Registrar (Audit) audited the entire Seva Vikas Coop Bank and discovered gross fraud and misappropriation of ₹429.6 crore spread across 126 NPA Loan accounts. The Board of Directors, chaired by Amar Mulchandani, has willfully breached all banking regulations by sanctioning loans to ineligible / shell businesses to syphon off funds. Based on this audit report, various FIRs were filed against the loan recipients and the bank’s management, including its ex-chairman Amar Mulchandani. Furthermore, the RBI has cancelled the bank’s licence,” it said.