Stories
ED Raids Yavatmal Cooperative Bank in Rs 242 Crore PMLA Fraud Probe
C
CNBC TV18•01-10-2026, 14:14
ED Raids Yavatmal Cooperative Bank in Rs 242 Crore PMLA Fraud Probe
- •The Enforcement Directorate conducted raids 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 PMLA case stems from multiple FIRs filed by Avdhutwadi Police Station against bank officials, employees, and borrowers.
- •The RBI cancelled the bank's license in 2022 due to numerous complaints of fraud and mis-utilisation of depositors' money.
- •A state government 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 repayment assessment.
- •Loan funds, totaling an alleged Rs 242 crore, were reportedly diverted contrary to the bank's bye-laws, loan policy, and RBI guidelines.
Key Questions Answered
The Enforcement Directorate conducted searches across multiple premises in Yavatmal as part of a money laundering investigation into alleged financial irregularities and a massive loan fraud at Babaji Date Mahila Sahakari Bank.
The Reserve Bank of India cancelled the bank's license in 2022 following multiple complaints of fraud and the mis-utilisation of depositors' money.
A special audit revealed that an estimated fraud of Rs 242 crore was committed by the chairperson and bank officials in collusion with loan beneficiaries and other actors.
