Mumbai: The Enforcement Directorate (ED), Mumbai Zonal Office, has restituted movable properties worth Rs 45.26 crore belonging to the Sagar Suryawanshi Group to the liquidator of Seva Vikas Co-operative Bank in connection with a money laundering case against Vinay Vivek Aranha and others. The restitution was ordered by the Special PMLA Court under section 8(8) the Prevention of Money Laundering Act (PMLA), 2002, the central agency said on Friday.
Bank Chairman, Borrowers Accused of Fraudulent Loans
According to the ED, its investigation revealed that former chairman of the bank, Amar Mulchandani, in collusion with others, sanctioned loans to select borrowers while overlooking creditworthiness norms. On this basis, Sagar Suryawanshi allegedly availed 10 loans worth Rs 41.42 crore in his name and in the names of family members and entities linked to him.
Funds Diverted for Personal Gain, Not Loan Purposes
According to the probe, the funds were used to buy properties and were also diverted to other accused and related firms. A substantial portion of these diverted funds was withdrawn in cash or utilised for personal enrichment, rather than the sanctioned purposes.
As a result, the 10 loans obtained by Suryawanshi and his family members turned into non-performing assets (NPAs) due to wilful default, leaving an outstanding liability of Rs 60.67 crore as of March 31, 2021.
Court Orders Restitution to Safeguard Depositors
The ED had attached Suryawanshi Group’s properties earlier under the Prevention of Money Laundering Act (PMLA) and filed a prosecution complaint in May 2023. Later, the liquidator of the bank approached the special PMLA court seeking restitution of the assets to safeguard depositors’ interests.
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Support of the plea, ED filed an affidavit before the court, stating that the attached properties could be handed over to the liquidator so they may be used for repayment to bona fide depositors.
Acting on the affidavit, the Special PMLA Court ordered the restitution of immovable properties worth ₹45.26 crore belonging to the Sagar Suryawanshi Group to the bank’s liquidator.
