Mumbai: In a major relief for depositors of scam-hit Karnala Nagari Sahakari Bank Ltd (KNSB), the special MP and MLA court has allowed the official liquidator to auction two big properties of politician Vivekanand Patil booked in the Rs 512 crore fraud. The assets include the plot of Karnala Sports Academy, Navi Mumbai, measuring over 50,000 sq m, and a land parcel in the Posari village.
EOW Registered Case in 2020 Against Patil and 76 Others in Multi-Crore Cheating Case
In February 2020, the Economic Offence Wing registered a case of cheating and forgery against Patil, who was the chairman of the Panvel-based bank and 76 others, including 12 bank officials.
Based on the offence, the Enforcement Directorate (ED) launched a money laundering probe and filed a prosecution complaint against Patil, who was earlier associated with the Peasants and Workers Party of India.
ED Seized 76 Properties Including Nine with Exclusive Attachment Orders
The EOW had attached 87 properties, including ancestral properties of Patil. The ED too has a dual attachment in some of the properties. The latter seized 76 properties; of which, nine of them were exclusively attached by the ED.
Liquidator Sought Court Permission to Auction Attached Assets for Depositor Repayment
The bank's official liquidator had recently approached the court to release the properties attached by the EOW and ED. The liquidator had pleaded that the properties be made absolute (be cleared of legal issues) and permission be granted to proceed with auction so that the depositors can be paid and the others debts can be cleared.
Auction Expected to Fully Settle Debts and Compensate Defrauded Bank Depositors
Giving his nod for auction, Patil said that the auction of these two properties would settle the entire debts. The process of auction is to be undertaken immediately in the interest of the depositors, ruled the court.
