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Maharashtra

ED Restitutes ₹386 Crore Worth Of Assets In Karnala Bank Fraud Case To Compensate 5 Lakh Depositors

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Mumbai: In a significant development in the Rs 560 crore Karnala Nagari Sahakari Bank fraud case, the Enforcement Directorate (ED) has restituted immovable assets worth Rs 386 crore to the Competent Authority appointed under the Maharashtra Protection of Interest of Depositors (MPID) Act. The move is a major step towards compensating over five lakh depositors, many of whom are senior citizens and small investors, who lost their savings following the bank’s collapse.

The restituted assets, now slated for auction, were previously provisionally attached by the ED during its money laundering probe. According to officials, the properties located across Panvel and Raigad districts were acquired using funds siphoned off through bogus loans issued in gross violation of Reserve Bank of India (RBI) norms.

Fraud Rooted in Fake Loan Accounts

The investigation stems from a First Information Report (FIR) registered on February 17, 2020, by the Economic Offences Wing (EOW), CID, Pune. The chargesheet alleges that the bank’sKarnala Charitable Trust former chairman, Mr. Vivekanand Shankar Patil, along with other senior officials, engaged in a criminal conspiracy to defraud the cooperative bank by creating 63 fictitious loan accounts using forged documentation. The fraud, reportedly operational since 2008, facilitated the diversion of approximately Rs 560 crore into entities controlled by Patil, including the Karnala Charitable Trust and the Karnala Sports Academy.

ED investigation revealed that the proceeds of crime were channelled through 63 fictitious accounts to disguise the fraudulent transactions. These funds were later diverted into multiple bank accounts held by entities associated with Patil and his relatives. The money was allegedly used for the construction of a sports complex, educational infrastructure, and other personal investments, while being projected as legitimate assets.

Main Accused in Judicial Custody Since 2021

Vivekanand Shankar Patil, a four-time legislator from the Raigad district and a former Member of the Maharashtra Legislative Council, is a prominent figure in the state’s cooperative movement. As chairman of the Karnala Nagari Sahakari Bank, Patil allegedly played a central role in orchestrating the fraud. The ED arrested him under provisions of the Prevention of Money Laundering Act (PMLA) in 2021. Patil has remained in judicial custody since his arrest.

The immovable properties in question, including a multi-acre sports academy in Panvel and a prime land parcel in Posari, Raigad district, were attached in two phases on August 17, 2021, and October 12, 2023. A prosecution complaint in the matter was filed before the Special PMLA Court in Mumbai on August 12, 2021, and trial proceedings are currently ongoing.

Court Authorises Liquidation for Repayment

The restitution was initiated after the Reserve Bank of India-appointed liquidator filed an application under Section 8(8) of the Prevention of Money Laundering Act (PMLA), seeking permission to auction the attached properties. The ED supported the request. Acting on the application, the Special PMLA Court, in an order dated July 22, 2025, authorised the auction of the Karnala Sports Academy and a land parcel in Posari. The proceeds from the sale will be used to compensate the bank’s depositors.

At the time of its collapse, Karnala Nagari Sahakari Bank held deposits worth ₹553 crore from over five lakh customers. Given the widespread financial damage, the ED stated it moved proactively to ensure the early handover of attached assets for liquidation and compensation.

Maharashtra

Admissions sought for Junior KG to Grade 4 in Govind BMC ‘Mumbai Public School, Shivaji Nagar English School No. 01’

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Mumbai: The Education Department of Mumbai Municipal Corporation (BMC) has started an English medium school named ‘Mumbai Public School, Shivaji Nagar English School No. 01’ in a newly constructed building at Mumbai Public School, Shivaji Nagar School Complex No. 4, Baji Prabhu Deshpande Marg, Near Shivaji Nagar Market, Mumbai (04W), Govind 04, Mumbai Public School, Shivaji Nagar School Complex No. 4, Mumbai (04W).

The school follows the Maharashtra State Board curriculum and will conduct classes from Junior KG to Grade 4. It is worth noting that priority admission will be given to students currently studying in unauthorized schools in Govind and surrounding areas. Due to the limited number of seats, the BMC Education Department appeals to as many parents as possible to avail this facility.

Interested parents should contact the following address for admission: Address: 1st Floor, Mumbai Public School, Shivaji Nagar School Complex No. 4, Baji Prabhu Deshpande Marg, Near Shivaji Nagar Market, Govind (West), Mumbai – 400 043.

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Maharashtra

Action taken by Mumbai Municipal Corporation’s ‘F-South’ and ‘H-East’ wards, 15 shops removed in Dadar and Santa Cruz areas

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Mumbai: Municipal Corporation is taking strict action as part of its ‘Pedestrian First’ campaign, which aims to remove obstructions from footpaths and make them walkable for pedestrians. Under this initiative, 15 unauthorised shops and 15 unauthorised hawkers obstructing footpaths in Dadar area (from ‘F-South’ ward) and Santacruz area (from ‘H-East’ ward) were removed today (August 13, 2026).

As per the directions of the High Court, under the guidance of Municipal Commissioner Ashwini Bhide. Led by Additional Municipal Commissioner (City) Prajakta Vermalawangire, the Mumbai Municipal Corporation is implementing the ‘Pedestrian First’ campaign to immediately remove unauthorised hawkers and encroachments, thus ensuring obstacle-free footpaths.

Under the guidance of Deputy Commissioner (Zone-2) Prashant Sapkale and led by Assistant Commissioner (F-South Ward), the drive was carried out in Dadar (East) area by the ‘F-South’ ward. During this drive, 04 unauthorized shops, 12 temporary tarpaulin sheds, 06 unauthorized platforms (cut*) and 15 hawkers obstructing the footpath along Dr. Babasaheb Ambedkar Road in Dadar (East) were removed.
Under the guidance of Deputy Commissioner (Zone-3) Vishwas Mote and led by Assistant Commissioner (H-East), Mrudula Ende, ‘H-East’ ward today conducted an encroachment removal drive in Santa Cruz (East) area. The drive included demolition of six unauthorized shops located along roads 6, 7 and 11 in TPS-3 area as well as five unauthorized shops located on the footpath along Nanasaheb Dharmadhikari Marg. The operation also included a food van. The drive has cleared about 500 meters of sidewalk space, making it easier for pedestrians to walk. Meanwhile, the municipal corporation is taking various steps to ensure clean and accessible sidewalks for pedestrians. As a result, the administration has warned against unauthorized construction or placing any material on the sidewalks that obstruct them. Strict action will be taken if such violations are observed.

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Maharashtra

Mumbai: Murder sparks sensation after dispute over hotel bill payment, police launch major operation, solves murder mystery within 24 hours, two arrested accused confess

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A sensational incident of murder of a youth took place in a hotel in Mumbai after a dispute over payment of the bill, after which tension spread here, while the police have succeeded in arresting the accused within 24 hours. On the night of August 11, a man was severely beaten near the Salman Hotel in the limits of Goregaon police station. Aziz Muhammad Atiq Khan, 30, was admitted to the hospital where the doctors declared him dead. The police have started an inquiry into the murder. The victim’s brother told the police that Aziz Khan asked the owner of Salman Hotel, Danish Khan, to pay the hotel bill to two people. During this, both of them argued with the victim and said that we don’t know what you have to do with this. We will see about you … Then they both attacked the victim and hit Aziz Khan on the head with a wooden box, due to which he was seriously injured and the doctors declared him dead during treatment. The police have registered a case of murder and started searching for the accused. Six teams were formed to arrest the accused. After receiving a tip-off, the police arrested the accused and they have confessed to the crime. The accused have been identified as Ajay Mani Upadhyay, 39, and Vikas Devaraj Paswan, 32, an office boy. Within 24 hours, the police have solved the mystery of the murder and succeeded in arresting the accused. This operation was carried out by DCP Parshottam Karad on the instructions of Mumbai Police Commissioner Devin Bharti.

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