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ED Raids Yavatmal Cooperative Bank in Rs 242 Crore Money Laundering Probe
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News18•01-10-2026, 13:15
ED Raids Yavatmal Cooperative Bank in Rs 242 Crore Money Laundering Probe
- •The Enforcement Directorate conducted searches at nine locations in Maharashtra's Yavatmal district as part of a money laundering investigation into alleged financial irregularities at Babaji Date Mahila Sahakari Bank.
- •The case stems from multiple FIRs filed against bank officials, employees, and borrowers, with the central agency registering a case under the Prevention of Money Laundering Act (PMLA).
- •The RBI cancelled the bank's license in 2022 due to numerous complaints of fraud and misuse of depositors' money.
- •A special audit revealed that the CEO, chairperson, directors, and bank officials allegedly colluded with borrowers, valuers, and auditors to disburse loans without proper collateral or adequate assessment of repayment capacity.
- •Loan funds were reportedly diverted contrary to the bank's bye-laws, loan policy, and RBI guidelines, leading to an alleged fraud of Rs 242 crore committed by the chairperson and bank officials in collaboration with loan beneficiaries.
Key Questions Answered
The Enforcement Directorate conducted searches at multiple premises in Yavatmal as part of a money laundering investigation into alleged financial irregularities and a multi-crore fraud at Babaji Date Mahila Sahakari Bank.
The Reserve Bank of India cancelled the bank's license in 2022 following multiple complaints regarding fraud and the mis-utilisation of depositors' money.
A state-ordered special audit revealed that bank officials, the chairperson, and directors colluded with borrowers, valuers, and auditors to disburse loans without proper collateral or repayment assessments, diverting funds against guidelines and resulting in a Rs 242 crore fraud.