5 lakh customers lost their hard-earned money in the bank scam, now ED will compensate every single rupee! Know how
Karnala Nagari Sahakari Bank Ltd Panvel scam: The Mumbai Zonal Office of the Enforcement Directorate (ED) has taken major action and handed over immovable properties worth Rs 386 crore to the competent authority of MPID appointed by the Maharashtra government.
Karnala Nagari Sahakari Bank Ltd Panvel scam: The Mumbai Zonal Office of the Enforcement Directorate (ED) has taken major action and handed over immovable properties worth Rs 386 crore to the competent authority of MPID appointed by the Maharashtra government. This action has been taken in the scam related to Karnala Nagari Sahakari Bank Limited, Panvel. The seized properties will be distributed to more than 5 lakh depositors of the bank who lost their deposits in this scam.
Embezzlement of Rs 560 crore
In this case, the ED had temporarily attached the properties under Section 5 of the Prevention of Money Laundering Act (PMLA). The investigation revealed that the former chairman of the bank, along with other officials, cheated the bank and embezzled Rs 560 crore by investing the banks' funds in personal investments.
The whole game happened with 63 fake accounts
The investigation was started on the basis of an FIR lodged by the Pune Crime Branch (IOW, CID) on 17 February 2020. It is alleged that the bank officials created 63 fake loan accounts and embezzled this through fake documents, ignoring the guidelines and banking norms of the Reserve Bank of India (RBI).
How did this scam happen?
The ED investigation also found that this money was transferred to various entities run by Vivekananda Shankar Patil and his relatives. With this money, he bought several immovable properties in Raigad district of Maharashtra. These properties were seized on 17 August 2021 and 12 October 2023.
A prosecution complaint was filed in the case in the special PMLA court on August 12, 2021 and the trial is still going on. Meanwhile, the RBI-appointed liquidator filed an application in the Mumbai special court under Section 8(8) of the PMLA to return the properties to the depositors, which was also supported by the ED.
Customers will get money back
On July 22, 2025, the special court ordered that the property of Karnala Sports Academy located in Panvel be handed over to the liquidator and put up for auction. Also, the land located in Posari, Raigad was also approved for auction so that its amount could be distributed among the depositors.
5.53 lakh depositors of Karnala Nagari Sahakari Bank Limited, Panvel had deposited a total of Rs 553 crore, which was stuck due to this scam. ED has expedited this redistribution process keeping in mind the interest of the depositors.
