Former MLA & bank chairman Vivekanand Patil arrested on charges of money laundering

The fraud initially came to light after an audit by the cooperative department found irregularities in the functioning of Karnala Nagari Sahakari Bank, whose chairman is Patil.

The Enforcement Directorate (ED) on Tuesday arrested former MLA Vivekanand Patil, 66, in a money laundering case where cash to tune of Rs 513 crores was laundered. Patil, a member of the Peasants and Workers Party, was the chairman of the scam-hit Karnala Nagari Sahakari Bank in Panvel. The fraud initially came to light after an audit by the cooperative department found irregularities in the bank’s functioning. The Reserve Bank of India had placed restrictions on the lender as it was found that the bank management controlled by Patil had been diverting funds to fictitious accounts. Hundreds and thousands of accounts were allegedly created by Patil and 74 others, who diverted over Rs 513 crore of depositors money into these fictitious accounts.