Bombay HC reprieve for bank CEO booked in ₹3.18-crore loan fraud case

The Bombay high court (HC) has granted interim protection from arrest to Sanjay Sawant, chief executive officer (CEO) of Raigad Sahakari Bank, booked in connection

The Bombay high court (HC) has granted interim protection from arrest to Sanjay Sawant, chief executive officer (CEO) of Raigad Sahakari Bank, booked in connection with purported fraudulent disbursement of ₹3.18 crore as loans against forged life insurance policies drawn in the name of 124 Mumbai residents.

The HC judge felt that it was possible that the bank CEO was misled by the forged documents, and granted him interim anticipatory bail (HT Photo)

The alleged fraud came to light after one of the bank’s account holders, Jayashree Sawant, received communication from the bank for repayment of a loan of ₹5.75 lakh.

On May 18, 2019, Kalachowky police station registered an offence based on her complaint, alleging that one Adavkar had forged life insurance policies in her name and used them to obtain the loan.

The investigation revealed that in all, loans of ₹3.18 crore were disbursed by the bank in the name of 124 residents, using similar modus. Police have since arrested some bank officials and private individuals linked with the fraud.

Sawant, the bank’s CEO, had moved HC, claiming that though loans were sanctioned under his signature, he had to depend on the report made by his subordinates. He maintained that the forged documents were so similar to originals that it was impossible to notice any difference. He urged the court to grant him pre-arrest bail, claiming that he was misled by the main accused Adavkar, an agent of the bank, and some of his bank officials.

Assistant public prosecutor Pallavi Dabholkar opposed the plea by pointing out that Adavkar was appointed to the bank by the Sawant himself — indicating that the CEO was hand in glove with the prime accused. She submitted that looking at the large number of victims, it was impossible to believe that the CEO had no role to play in the fraud.

Justice Sarang Kotwal, however, noticed that the charge-sheet filed in June against other accused in the case made no reference to any role played by Sawant. The judge felt that it was possible that the bank CEO was misled by the forged documents, and granted him interim anticipatory bail.