Shiv Sena leader Anandrao Adsul has committed a fraud by swindling Rs 900 crore of 91,000 account holders of the City Cooperative Bank Limited. His personal assistant Neil Bhalerao is also involved in defrauding 91,000 account holders whose 10 branches are located in Mumbai. The Lok Sabha had passed a bill that provides comprehensive mechanism to ban unregulated deposit scheme and protects the interest of depositors on February 2019.
Independent MP from Amravati Navneet Ravi Rana said, “As per inquiry made by RBI, it has been proved that City Cooperative Bank has cheated account holders. The 91,000 account holders can only withdraw Rs 1000 from their accounts itself is unjustified. Account holders have already deposited their money in the account and their money should have been secured by the bank.
The City Cooperative Bank has cheated the customers who are pension holders, small shopkeepers, and mill workers. Around five to six customers died after hearing the news of bankruptcy.”
Poor people have deposited money in the City Co-operative Bank for saving funds to meet the expenditure of marriage of their children and education. When a complaint was filed with Chief Minister Devendra Fadnavis, he stated that stringent action should be taken against the accused. The secretary of President’s office has called for a thorough investigation into this matter.
The RBI and cooperative commissioner of Maharashtra held an inquiry and it was proved that the bank has become bankrupt. As per the RBI circular, the bank has also been barred from granting loans, making investments, creating fresh liabilities or dealing with its assets in any way. The bank has reportedly been irregular in submitting financial statements with the regulator. Sources say the bank like several other financial institutions in the co-operative sector was badly affected by demonetisation of Rs 500 and Rs 1,000 notes. Adsul was among the most prominent voices demanding that the RBI allow banned currency notes held by co-operative banks to be deposited urgently.
It was proved that Chairman had committed a fraud. CM Fadnavis also called for a probe into this incident. “The bank accepted deposits from poor people. Money was lent to builders for 20 to 30 per cent and mortgaging property worth Rs 50 lakh. Justice should be done to these 91,000 account holders. The amount of Rs 50 lakh was shown as Rs 10 crore and loan amount of Rs 20 crore was sanctioned,” she added. Navneet called for strict action to be taken against fraudsters. She also wanted that action must be taken against Anandrao Adsul and his PA Neil Bhalerao.
The bank became bankrupt for charging 20 to 30 per cent from builders. 91,000 account holders of the bank belong to poor family background. Due to the fraud poor people who are the account holders of the bank are facing severe hardships. They have to run from pillar to post for their hard earned money.