On June 15, 2023, Sagar Maruti Suryawanshi was taken into custody by the Directorate of Enforcement (ED) in accordance with the requirements of the 2002 Prevention of Money Laundering Act. The arrest is related to the ongoing investigation into the fraud at Seva Vikas Cooperative Bank, which cost the bank Rs 429 crore in 124 NPA loan accounts. This led to the Bank’s bankruptcy, which cost thousands of small depositors their money.
On the basis of several FIRs filed in Pune against loan defaulters as well as Amar Mulchandani, the former chairman of the bank, and other directors and executives, the ED opened an inquiry. Investigations have shown that Amar Mulchandani was operating the bank as a family business without adhering to any responsible banking practices and that favoured loans were approved in exchange for significant payments. Over 92% of the loan accounts had become NPA, which finally caused the bank to fail. The bank’s licence has been revoked by the RBI.
It was discovered that Sagar Suryawanshi and his family members had scammed the bank of Rs. 60.67 Crore through 10 NPA loan accounts. He secured loans with Amar Mulchandani’s help and without having the necessary creditworthiness or ability to repay them. He was taken into ED custody after being arrested and produced before the Hon’ble Special PMLA Court in Mumbai for ten days, or until June 26, 2023. In this instance, properties worth Rs 122.35 crore were previously temporarily attached. Investigation into the matter is still ongoing.
