The Enforcement Directorate(ED) in Mumbai has restituted immovable properties valued at Rs 386 crore to the Competent Authority below the Maharashtra Safety of Curiosity of Depositors (MPID) Act in reference to the monetary fraud involving Karnala Nagari Sahakari Financial institution, Panvel. The restitution goals to compensate depositors who suffered monetary losses as a result of a large-scale embezzlement.
The properties have been earlier provisionally hooked up by the ED below Part 5 of the Prevention of Cash Laundering Act (PMLA), following investigations that exposed the erstwhile chairperson, in collusion with different financial institution officers, orchestrated a fraud involving solid paperwork and bogus mortgage accounts. In response to an FIR filed by the Financial Offences Wing (EOW), CID, Pune, on February 17, 2020, 63 fictitious mortgage accounts have been created, by way of which Rs 560 crore was siphoned off for personal investments.
Subsequent investigations below PMLA established that the diverted funds have been funneled into numerous entities linked to Vivekanand Shankar Patil and his family. The laundered proceeds have been used to accumulate immovable properties throughout Raigad District in Maharashtra. These property, price Rs 386 crore, have been hooked up on August 17, 2021, and October 12, 2023. A prosecution grievance was filed on August 12, 2021, earlier than the Hon’ble Particular Courtroom, PMLA, and the trial is at the moment ongoing.
In response to a restitution utility filed below Part 8(8) of PMLA by the RBI-appointed liquidator, the ED granted its consent. The PMLA Particular Courtroom, Mumbai, by way of its order dated July 22, 2025, directed the discharge of the property positioned at Karnala Sports activities Academy, Panvel, to the liquidator for public sale. The court docket additionally instructed the Competent Authority, MPID, to public sale land located at Posari, Raigad, and distribute the proceeds amongst affected depositors.
Karnala Nagari Sahakari Financial institution had over 5 lakh depositors with whole deposits amounting to Rs 553 crore. These depositors misplaced their financial savings as a result of fraudulent actions of the financial institution’s administration. In view of the dimensions of public loss and to expedite restoration for the victims, the ED has taken proactive steps ensuing within the present restitution of property.
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