The Mumbai branch of the Directorate of Enforcement (ED) has apprehended three people under the Prevention of Money Laundering Act (PMLA) 2002 as part of their inquiry into the fraud at Seva Vikas Cooperative Bank. Among those arrested are Bablu Sonkar, who is known to be a close associate of former chairman Amar Mulchandani, as well as two contract workers employed at the ED Office.
The Directorate of Enforcement (ED) in Mumbai launched an investigation into the Seva Vikas Cooperative Bank after receiving several FIRs from the Pune Police. The FIRs were based on complaints from the bank and an audit conducted by the Registrar of Cooperative Societies, which revealed significant fraud and misuse of public funds resulting in a loss of Rs 429 Crore.
ED's investigation discovered that the bank was being operated like a family-owned business without adhering to proper financial guidelines. Loans were being approved without adequate security or determining the creditworthiness of the applicants in exchange for significant bribes. As a result, over 92% of the loan accounts became NPAs, and the bank has now gone bankrupt. The ED conducted multiple searches at various locations during the investigation.
During the investigation, the ED noticed that a certain individual was frequently present around the ED Office premises. Upon interception, it was discovered that the person was Bablu Sonkar, an employee of Amar Mulchandani.
The ED found out that Sonkar was instructed by the Mulchandani family to threaten witnesses and bribe the Data Entry Operator and a contingent staff member working at the ED office for sensitive information. The amounts paid as bribes were subsequently seized by the ED. Incriminating documents were also found in Sonkar's possession, and the ED's investigation revealed that the ED staff and the contractual staff had been providing the sensitive information to Sonkar. As a result, they were also arrested under PMLA.