The forensic audit report into the Rs. 2,043 crore alleged fraud involving DSK Developers Ltd (DSKDL) has leveled charges against a six-member consortium of nationalised banks, including Bank of Maharashtra.
A six-member consortium of nationalised banks, including BoM, are under the scanner for allegedly aiding and abetting DSK.
The forensic report was prepared by veteran forensic auditor Shekhar Sonalkar (70), and a four-member team comprising Vedvati Lele, Vidya Lahoti, Mansi Rawat and Ashwini Patil, all chartered accountants. Sonalkar and team took over four-and-a-half months to unearth, what they claim, is criminal financial conspiracy.
The consortium of six banks are State Bank of India (SBI), Industrial Development Bank of India (IDBI), Union Bank of India (UBI), Syndicate bank, Vijaya bank and BoM, have been named in the remand application submitted before the special MPID court by the EOW.
The bank consortium approved Rs 600 crore worth of loans to DS Kulkarni developers limited (DSKDL) for the Dream City project. Rs 372 crore of that amount was disbursed in violation of RBI rules, the forensic report states.
Sonalkar told Hindustan Times that 62 % of the sanctioned loan amount was disbursed in 2016. “Of a total of Rs 80 crore disbursed in 2017, BoM disbursed Rs 10 crore when DSK Group was in the doldrums. The entire 62% of the Rs 600 crore disbursed by the banks has been siphoned off with fraudulent transactions,” Sonalkar said.
{{/usCountry}}Sonalkar told Hindustan Times that 62 % of the sanctioned loan amount was disbursed in 2016. “Of a total of Rs 80 crore disbursed in 2017, BoM disbursed Rs 10 crore when DSK Group was in the doldrums. The entire 62% of the Rs 600 crore disbursed by the banks has been siphoned off with fraudulent transactions,” Sonalkar said.
{{/usCountry}}“The consortium of banks failed to monitor the end users of the sanctioned loans and by the arrest of top bank officials, the message is loud and clear that such criminal violations of law will no longer be tolerated ,” he said, adding, “Had the bank taken remedial measures, the scam would have been averted long ago.”
Investigators maintain that had the consortium abided RBI rules, they could have easily found that the loan amount was not being used for the specific project it was given for, and was being siphoned off.