The probe agency said that loans were sanctioned to CSF despite weak financial and negative network
The Enforcement Directorate (ED) has registered a money laundering case against Nationalist Congress Party (NCP) chief Sharad Pawar, nephew Ajit Pawar and several former directors of Maharashtra State Co-operative Bank in connection with a Rs 25,000-crore loan scam. The setback for the Pawars comes a month before Maharashtra goes to the polls. The NCP had won 41 seats in the 2014 Assembly elections.
According to the probe agency, loans were provided to cooperative sugar factories (CSFs) in connivance with then senior officials of the co-operative bank with the purpose of siphoning off money, causing a huge loss to the bank.
“There were several irregularities in the sanctioning of loans… only with the purpose of extending benefits to the directors of the lending bank, for personal gains,” the ED said. These loans were sanctioned between 2007 and 2010.
Explaining the modus operandi, the probe agency said loans were sanctioned to CSFs despite weak financials and negative net worth. No collateral was taken in many cases, and credit was extended based on incorrect representation made by the bank. The bank even extended additional working facilities to certain sugar factories without having any prudent reason….
No comments:
Post a Comment