Bank Of Maharashtra Faces Scrutiny As Pune Lease Row Reaches US Senators, MPs Seek Probe Into ₹1,116 Crore Deal

Mumbai, April 8: A Pune property lease matter concerning Bank of Maharashtra has been escalated, with U.S. Senator Sujata Gadkar-Wilcox taking up the matter with the Indian authorities, including the Prime Minister, the Chief Minister of Maharashtra, and the U.S. Embassy in Delhi.

Another senator, Richard Blumenthal, has written to the Federal Bureau of Investigation (FBI). This follows complaints made by a U.S. citizen of Indian origin, Vinod Gannu. Parallely, two Indian MPs, Dr Kalyan Kale and Dr Shivaji Kalge, have urged Union Finance Minister Nirmala Sitharaman to order an investigation into the matter.

Lease deal and financial concerns

The bank had floated a tender for shifting its head office to a leased premises on a plug-and-play model. The bank said the lowest bidder was selected and a lease deed was executed on January 10, 2025.

Dr Kalge has pointed out in his letter to the FM that the bank entered into a 15-year lease arrangement involving 1.25 lakh sq ft of office premises in Mont Claire building, Baner-Pashan Road, from multiple lessors, with an estimated financial outgo of Rs 1,1116 crore, including the impact of interest.

The MP said constructing a new building on the existing bank-owned land (1,07,701 sq ft RERA carpet) would have cost only Rs 60 crore, including Rs 38 crore towards construction and fit-out at Rs 21.5 crore.

"This estimated capital expenditure is significantly lower than the projected lease outgo over 15 years and would have resulted in asset ownership rather than recurring expenditure. The apparent financial disparity warrants a thorough examination from the standpoint of public accountability and protection of public funds," Dr Kalge noted.

He has also raised concerns about the actual number of parking slots available and the number that has been agreed to be leased.

Allegations raised by complainant

Gannu, in his complaint to the Central Bureau of Investigation, said Niraj Kumar Associates Pvt Ltd (NKAPL), the original developer, had taken funding from a finance group to construct office space of about 6 lakh sq ft. But since the company was stuck, an entity called Konbil Landmark entered the picture to get NKAPL and the lender out of the stalled project.

But the fact that Gannu, a U.S. citizen with a 50% partnership, and the name of the lender and the asset reconstruction company have not been referenced in the lease document, and nor is there any reference to NOC being obtained from any of the entities. Gannu wondered how the bank could have entered into the agreement when the original documents are still in his possession.

Gannu alleged that the premises were taken on lease at an exorbitant rate much beyond the market price by incurring a loss of Rs 95.66 crore. The bank has also paid for a non-existent carpet area amounting to Rs 41.54 crore, including GST." He has further alleged that the bank has taken non-existing parking area on lease" and lost Rs 8.64 crore in the process.

Bank’s response

In its reply to queries mailed by the FPJ, Chief Manager (corporate communications) of the bank, Gitanjali Sinha, replied that the property is owned by an LLP and a resolution authorising the lease and execution of the lease deed was passed by a majority of the designated partners of the LLP. Gannu said, "I am not a party to the resolution and in any case such a resolution has to be passed by all partners."

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The resolution complied with legal requirements and the deed is binding on all partners, Sinha noted. She said the bank has acquired the premises in accordance with the terms and conditions outlined in the tender documents.

Sinha said the bank had "thoroughly examined and verified the title of the property and entered into the lease agreement totally within the framework of the tender documents." She denied any wrongdoing by the bank.

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