The Enforcement Directorate(ED) in Mumbai has restituted immovable properties valued at Rs 386 crore to the Competent Authority under the Maharashtra Protection of Interest of Depositors (MPID) Act in connection with the financial fraud involving Karnala Nagari Sahakari Bank, Panvel. The restitution aims to compensate depositors who suffered financial losses due to a large-scale embezzlement.
The properties were earlier provisionally attached by the ED under Section 5 of the Prevention of Money Laundering Act (PMLA), following investigations that revealed the erstwhile chairperson, in collusion with other bank officials, orchestrated a fraud involving forged documents and bogus loan accounts. According to an FIR filed by the Economic Offences Wing (EOW), CID, Pune, on February 17, 2020, 63 fictitious loan accounts were created, through which Rs 560 crore was siphoned off for private investments.
Subsequent investigations under PMLA established that the diverted funds were funneled into various entities linked to Vivekanand Shankar Patil and his relatives. The laundered proceeds were used to acquire immovable properties across Raigad District in Maharashtra. These assets, worth Rs 386 crore, were attached on August 17, 2021, and October 12, 2023. A prosecution complaint was filed on August 12, 2021, before the Hon’ble Special Court, PMLA, and the trial is currently ongoing.
In response to a restitution application filed under Section 8(8) of PMLA by the RBI-appointed liquidator, the ED granted its consent. The PMLA Special Court, Mumbai, through its order dated July 22, 2025, directed the release of the property located at Karnala Sports Academy, Panvel, to the liquidator for auction. The court also instructed the Competent Authority, MPID, to auction land situated at Posari, Raigad, and distribute the proceeds among affected depositors.
Karnala Nagari Sahakari Bank had over 5 lakh depositors with total deposits amounting to Rs 553 crore. These depositors lost their savings due to the fraudulent activities of the bank’s management. In view of the scale of public loss and to expedite recovery for the victims, the ED has taken proactive steps resulting in the current restitution of assets.
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