The Enforcement Directorate (ED) has provisionally attached immovable properties linked to Vivek Patil. Patil, a four-time Member of the Legislative Assembly (MLA) and a prominent leader of the Peasants and Workers Party (PWP). He is also the former Chairman of Karnala Nagari Sahakari Bank Ltd, Panvel, and the Karnala Mahila Readymade Garments Cooperative Society Limited, which has properties with a book value of ₹152 Crore. This attachment of assets, including extensive land holdings, bungalows, residential complexes, and more, was carried out on October 12, 2023. It is in connection with an alleged Bank Fraud case related to Karnala Nagari Sahakari Bank Ltd, Panvel. The properties of his relatives were also attached.
ED's investigation based on FIR registered by EOW
The ED's investigation was initiated based on an FIR registered by the Economic Offences Wing (EOW) of the Mumbai Police in 2019. The fraud came to light during an audit at the Reserve Bank's behest in 2019-20. The audit revealed that Vivek Shankar Patil had been siphoning off funds from the bank through 67 fictitious loan accounts, funnelling these funds to various entities, firms, and trusts under his ownership or control. These included the Karnala Charitable Trust, Karnala Sports Academy, Karnala Mahila Readymade Garments Cooperative Society Limited, and other entities under his influence.
Massive fraud amounting to ₹560 crore
The ED's investigation exposed a massive fraud amounting to approximately ₹560 Crore related to these fictitious loan accounts. To conceal these fraudulent transactions, funds were routed through these fake accounts and then transferred to multiple bank accounts owned or controlled by Patil. These funds were subsequently utilized by entities like the Karnala Charitable Trust and Karnala Sports Academy for various projects, including a sports complex, college, schools, and for personal gains. This process effectively laundered the proceeds of crime while presenting them as legitimate.
Vivek Patil was arrested by the ED on June 15, 2021, and is currently in judicial custody. A Prosecution Complaint for money laundering offenses was filed against him and the bank on August 12, 2021. A provisional attachment order, dated August 17, 2021, had previously been issued, attaching immovable properties of Vivek S Patil, his family members, and related concerns, with an estimated worth of ₹234 Crore. As of now, assets with a book value of ₹386 Crore have been attached in connection with this case.
