The Enforcement Directorate (ED) on Tuesday said it has attached immovable properties worth Rs 234 crore of Vivekanand Shankar Patil, a four time MLA and former Chairman of Karnala Nagari Sahakari Bank Ltd, in a bank fraud case.
The attached properties, inter-alia, include Karnala Sports Academy and many land parcels.
ED initiated investigation on the basis of an FIR registered by Economic Offence Wing (EOW) of Mumbai Police in 2019.
“The fraud came to light after an audit was done at the instance of Reserve Bank in 2019-20, when it was revealed that Patil was siphoning off funds from the bank through 63 fictitious loan accounts to the loan accounts of Karnala Charitable Trust and Karnala Sports Academy, which were founded and controlled by him,†the agency said in a statement.
The “fraud†was going on since 2008. It was found that management of the bank was under control of Vivekanand Patil.
The agency had arrested Patil on June 15 this year and filed a prosecution complaint (chargesheet in police parlance) on August 12.
Money laundering investigation under PMLA revealed that the defrauded amount was to the tune of approximately Rs 560 crore (including interest) in respect of 67 fictitious accounts, it said.
To hide the swindling, the available funds were routed to these fictitious accounts and from these accounts to the several bank accounts of entities founded/ controlled by Patil.
These funds were then utilised by Karnala Charitable Trust and Karnala Sports Academy for construction of properties such as sports complex, college and schools and for other personal gains, thereby using the proceeds of crime and projecting the same as untainted in contravention of offence of money laundering, it added.
