Massive fraud uncovered at Mahalakshmi urban cooperative bank

Belagavi: A major financial scam has come to light at the Mahalakshmi Urban Cooperative Bank in Gokak town where 14 individuals, including five bank employees, have been accused of defrauding the bank of Rs 74.86 crore by taking loans and failing to repay them. The fraudulent activities have left thousands of depositors in distress, as many of them have deposited their life savings in the bank. The complaint, filed by Bank Chairman Jeetendra Mangalekar, alleges that the group orchestrated a large-scale scam between July 2021 and April 2023. The accused, including employees Sagar Sabakale, Vishwanath Bagade, SambhajeeGurupade, Siddappa Pawar, and Dayanand Uppin, along with their relatives Sanjana Sabakale, MallavvaSabakale, GauravvaHavaldara, ChandravvaHavaldara, ParasappaMaloji, Radha Maloji, Sandeep Marathe, and Kira Supali, are accused of borrowing large sums of money from the bank under false pretexts. According to the complaint, the accused initially deposited Rs 6.97 crore in the bank in stages, using it to build a facade of credibility. They then secured loans amounting to Rs 81.83 crore over the span of three years.

However, they allegedly used the money to acquire properties elsewhere and failed to return Rs74.86 crore of the borrowed amount. It is also claimed that the bank staff misused their positions by sanctioning loans to their relatives and friends without following proper procedures.

The case has been registered at Gokak police station, and an investigation is underway. Superintendent of Police Dr.Bhimashankar confirmed the seriousness of the case, stating, “A complaint has been filed by the bank chairman against 14 accused, including bank employees, for defrauding Rs 74.86 crore. Three investigation teams have been formed to probe the matter, and we are considering transferring the case to the CID for further investigation.”

As news of the scam spread, hundreds of furious customers gathered outside the bank to protest, demanding their money be returned. Many of these depositors, including small traders and local residents, have expressed concerns over the safety of their hard-earned savings, with some even threatening legal action against the bank’s management.

One of the protestors stated, “We have deposited our hard-earned money in this bank, trusting them to keep it safe. Now, we are facing uncertainty because of the greed and misconduct of a few people. We demand that the bank return our money immediately.”

The Mahalakshmi Urban Cooperative Bank has approximately 3,000 depositors in Gokak, Chikkodi, Nippani, and Belgaum.

The discovery of this massive fraud has not only shaken the local banking community but also raised questions about oversight and governance within cooperative banks. The investigation is expected to reveal more details in the coming days, with depositors anxiously awaiting justice.