Amar Mulchandani, the former chairman of the Seva Vikas Cooperative Bank, was arrested by the Enforcement Directorate (ED) on July 1 in a Rs 421 crore loan scam. Earlier in January, the agency had conducted searches at 10 locations linked to Mulchandani and had seized gold and diamond jewellery worth Rs 2.72 crore, cash worth Rs 41 lakh, luxury cars, digital devices and incriminating papers.
Bank approved 124 proposals, disbursed loans worth Rs 430 crore
The Seva Vikas Sahakari Bank had approved 124 proposals under the chairmanship of Mulchandi flouting rules to disburse loans worth Rs 430 crore to ineligible individuals and institutions. Cooperative Assistant Commissioner Rajesh Jadhav had audited the loans in 2020 and registered a case at Pimpri police station against five people, including Mulchandani.
The agency had said the bank was run like a family proprietorship by Mulchandani and loans were given without following norms, due to which 92% of the loan accounts turned into NPAs.
