Maharashtra CID Arrests Businesswoman in Multi-Crore Cooperative Bank Fraud Scheme

The Maharashtra Criminal Investigation Department has arrested Sheetal Tejwani, a businesswoman already facing judicial custody in a separate land fraud case, for her alleged involvement in a massive loan fraud at Seva Vikas Cooperative Bank. The arrest connects Tejwani to a wider scheme that defrauded the Pune-based bank of approximately Rs 429 crores across 124 irregular loans, impacting around one lakh depositors.

Tejwani was taken into custody on January 3 from Yerwada jail, where she was being held in connection with the Mundhwa land scam involving a firm partnered by Parth, son of Maharashtra Deputy Chief Minister Ajit Pawar. The CID's investigation now reveals an alleged pattern of loan diversion that stretches from cooperative banking to educational institutions.

Background and Context

The Seva Vikas Cooperative Bank fraud case originated in 2019 when depositor Dhanraj Aswani filed an FIR at Pimpri police station, alleging fraudulent loan sanctions by bank officials. The bank, headquartered in Pimpri with 25 branches serving approximately 100,000 depositors, became the subject of intensified scrutiny after auditors submitted their report in 2020. This led Pune's Pimpri Chinchwad police to establish a Special Investigation Team (SIT) to examine the bank's loan portfolio.

The SIT probe uncovered systematic irregularities in 124 loans totaling around Rs 429 crores, revealing a sophisticated network of alleged fraud that spanned multiple years and involved numerous beneficiaries. Following these revelations, the Enforcement Directorate launched an investigation under the Prevention of Money Laundering Act, seizing movable and immovable properties worth Rs 122.35 crore linked to various accused individuals.

Key Figures and Entities

Sheetal Tejwani, according to CID investigators, orchestrated two major loans from Seva Vikas Cooperative Bank that were allegedly misappropriated. The first loan of Rs 3 crores was taken in the name of her company Paramount Infrastructure from the bank's Pimpri branch. Rather than using these funds for business expansion, Tejwani allegedly transferred the money to Rosary Global School, an educational institution operated by Vinay Arhana, who had been arrested earlier in March 2024 in connection with the bank fraud case.

The second loan of Rs 2.25 crores was obtained in 2014 through Renuka Lawns, a firm co-owned by Tejwani and Sagar Suryawanshi, another accused arrested in March 2024. CID court filings indicate that these funds were also transferred to Arhana's account within Seva Vikas Bank. Investigators further noted that Renuka Lawns was never properly registered with the Assistant Registrar of Firms in Pune, raising questions about the legitimacy of the loan application process.

Legal and Financial Mechanisms

The alleged scheme exploited weaknesses in cooperative banking oversight and loan approval processes. According to court documents reviewed by investigators, Tejwani's companies received loans totaling Rs 7.25 crores, which, with accumulated interest, now represent an outstanding default of Rs 20.49 crore. The diversion of these funds to educational institutions rather than business purposes suggests a complex money trail designed to obscure the ultimate beneficiaries.

The use of unregistered entities like Renuka Lawns to secure significant loans highlights potential failures in due diligence processes within the cooperative banking sector. The Enforcement Directorate's subsequent seizure of assets worth over Rs 122 crore demonstrates the scale of financial misappropriation and the challenges faced by authorities in tracing and recovering misappropriated funds through complex financial structures.

International Implications and Policy Response

While the Seva Vikas case remains primarily a domestic investigation, it underscores broader vulnerabilities in cooperative banking systems globally. The alleged use of educational institutions as conduits for misappropriated funds reflects sophisticated money laundering techniques that challenge traditional financial oversight mechanisms. This case has intensified calls for stricter regulatory frameworks governing cooperative banks, particularly regarding large-scale loan approvals and inter-institutional fund transfers.

The case's connection to political figures through the Mundhwa land scam also highlights the intersection of financial crime and political influence, raising concerns about regulatory capture and the need for greater transparency in financial transactions involving politically connected individuals. The multi-agency response involving local police, CID, and the Enforcement Directorate suggests growing governmental resolve to address financial crimes in India's cooperative banking sector.

Sources

This report draws on official court filings from the Maharashtra Criminal Investigation Department, the original FIR registered at Pimpri police station in 2019, the 2020 auditor's report on Seva Vikas Cooperative Bank, Special Investigation Team findings, and public statements from the Enforcement Directorate regarding asset seizures under the Prevention of Money Laundering Act.