ED arrests former chairman of Seva Vikas Co-operative Bank, Amar Mulchandani for money laundering
Sunday | Jun 01 2025 | 09:41:16 AM
Sunday | Jun 01 2025 | 09:41:16 AM
New Delhi, July 6
The Enforcement Directorate (ED) has arrested Amar Sadhuram Mulchandani, the former Chairman of Seva Vikas Co-operative Bank in an alleged money laundering case.
The ED initiated PMLA investigation based on multiple FIRs registered in Pune against Mulchandani and other directors, officials and loan defaulters.
In the Seva Vikas Co-operative Bank fraud case, bank has suffered a loss of Rs 429 crore in 124 NPA loan accounts. This has caused the bank to go bankrupt causing loss to thousands of small depositors.
According to the ED, Mulchandani violated all prudent banking norms to illegally sanction loans to his favoured borrowers in an arbitrary manner, without checking their creditworthiness and without adequate collateral securities. He also took bribes at the rate of 20% commission of the sanctioned loan amount.
In addition to that, it also came to the fore that Mulchandani made his family members directors in the bank with a clear motive to have a brute majority in the board of directors to sanction loans as per his whims and fancies. More than 92% of the loan accounts had turned into NPA which ultimately led to the collapse of the bank. RBI has cancelled the license of the bank.
The properties worth Rs 122.35 crore were provisionally attached in this case including various benami assets of Mulchandani, officials said. He has been booked under the Prevention of Money Laundering Act (PMLA).
