The prosecution complaint or charge sheet has been filed before a special court in Mumbai that tries cases filed by the ED under the Prevention of Money Laundering Act (PMLA). Patil (66), a four-time MLA, was arrested by the agency in this case in June.
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The Enforcement Directorate (ED) has filed a charge sheet against former Maharashtra MLA Vivekanand Shankar Patil and others in a money-laundering case linked to an alleged fraud of over Rs 512 crore in a Panvel-located cooperative bank, the agency said on Thursday.
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The prosecution complaint or charge sheet has been filed before a special court in Mumbai that tries cases filed by the ED under the Prevention of Money Laundering Act (PMLA). Patil (66), a four-time MLA, was arrested by the agency in this case in June. The ED case is based on an FIR registered against Patil and about 75 others in February last year by the Economic Offences Wing (EOW) of the Navi Mumbai Police that alleged irregularities to the tune of Rs 512.54 crore in the Karnala Nagari Sahakari (cooperative) Bank that is headquartered in Panvel in the neighbouring Raigad district. Patil, who represented the Peasants and Workers Party in Maharashtra assembly, has been an ex-chairman of this bank.
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"The fraud came to light after an audit was done at the instance of the Reserve Bank of India during 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 him." "The fraud was going on since 2008. It was found that management of the bank was under control of Patil," the ED alleged in a statement. Probe found, the ED claimed, that the defrauded amount was to the tune of about Rs 560 crore (including interest) in respect of 67 fictitious accounts.
"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 etc. 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," the ED alleged. The bank is stated to have been established in 1996 under the Cooperative Banks Act after Patil received a licence from the RBI.
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