Belagavi SP Dr. Bhima Shankar Guled addressed the fraud case involving Mahalakshmi Urban Co-operative Credit Bank of Gokak Nagar, stating that the properties of the accused will be confiscated. The fraud, amounting to ₹74.89 crores, has led to legal action against those involved.
During a press conference at his office, Dr. Guled emphasized the need to protect depositors, explaining that the assets of individuals implicated in financial fraud can be confiscated under Section 107 of the Indian Penal Code. He noted that with assistance from bank staff and depositors, a total of 112 properties belonging to the accused have been identified, with a government valuation of ₹13.80 crores and a market value of ₹50 crores. The Superintendent of Police has authorized the investigating officer to file a court application for property confiscation in such cases.
The fraud at the Gokak bank began in 2021, leading to complaints against 14 individuals. Among the accused, the first five are bank employees who allegedly manipulated audits conducted by Reserve Bank of India (RBI) officials, presenting falsified documents to conceal their actions.
To apprehend the suspects, the police have formed seven teams. The accused include bank manager Siddappa Pawar and staff members Sagar Sabakale, Vishwanath Bagade, and others. Many of these individuals have gone into hiding since the case emerged.
Notably, Siddappa Pawar reportedly deposited ₹6.87 crores in his own bank under the names of friends and relatives, leveraging this to secure loans totaling ₹81 crores. Properties purchased with these funds are located in Gokak, Chikkodi, Hubli, and surrounding areas.
Regarding the situation for depositors, Dr. Guled reassured that discussions have taken place with the bank management board and staff. He confirmed that ₹45 crores have been loaned to customers, while ₹32 crores remain safe with the RBI. Additionally, there is an insurance facility of ₹5 lakhs for all deposits. The bank’s management has committed to repaying depositors using the funds held by the RBI, as stated by Dr. Bhima Shankar Guled.
