New Delhi [India], October 1 (ANI): The Enforcement Directorate (ED) is conducting search operations at nine different locations in the Yavatmal district of Maharashtra in connection with its ongoing Rs 242 crore money laundering case.
The case is based on multiple First Information Reports (FIRs) registered by Avdhutwadi Police Station in Yavatmal against officials and employees of Babaji Date Mahila Sahakari Bank and its borrowers.
ED's Mumbai zone conducted the search operations in close coordination with the security forces based on certain inputs.
Babaji Date Mahila Sahakari Bank Ltd, Yavatmal, was originally registered under section 9(1) of the Maharashtra Coop Societies Act, 1960. The licence of the bank was cancelled by the Reserve Bank of India in 2022.
Based on multiple complaints of fraud and misuse of depositors' money, a special audit was ordered by the state government wherein it was found that the CEO, Chairperson and Chairman, Directors and bank officials, in connivance with borrowers, valuers and auditors, disbursed loans without proper collateral and without adequate assessment of repayment capacity, and that the loan funds were thereafter diverted contrary to the bank’s bylaws and loan policy and RBI guidelines.
"It was further found that fraud of Rs 242 crore was committed by the Chairperson and bank officials in collusion with loan beneficiaries," said the officials.
The ED investigation so far has revealed the existence of a large nexus of bank officials and borrowers in the perpetration of this fraud.
The ED investigation found that the money taken by borrowers was syphoned off for personal use, withdrawn in cash, evergreening of loans, and transferred to accounts of bank officials as a kickback, amongst others. (ANI)
ED raids nine places in Maharashtra in Rs 242 crore money laundering case
