The Enforcement Directorate (ED) has attached immovable properties worth Rs 234 crore of Vivekanand Shankar Patil, a four-time MLA and Ex-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, the ED said on Tuesday.
The ED initiated investigation on the basis of FIR registered by the 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 Vivekanand Patil.
“The fraud was going on since 2008. It was found that management of the bank was under the control of Vivekanand Patil,” said the ED in a statement.
The ED arrested Patil on June 15 this year and filed a prosecution complaint last Tuesday.
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, said the ED.
“To hide the siphoning, the available funds were routed to these fictitious accounts and from these accounts to the several bank accounts of entities founded or controlled by Patil.”
These funds were utilised by Karnala Charitable Trust, 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 un-tainted in contravention of offence of money laundering, said the agency, adding further investigation is in progress.