ED raids 9 Yavatmal sites in Babaji Date Bank fraud case

It matters to citizens as it details the seizure of documents and findings of misappropriation of depositor funds.

Who it concerns: The Directorate of Enforcement (ED), officials and employees of Babaji Date Mahila Sahakari Bank, borrowers, valuers, auditors, and depositors of the bank.

What the ED says it did

• ED conducted search operations at 9 locations in Yavatmal district under the Prevention of Money Laundering Act (PMLA), 2002.
• Investigation was initiated based on FIRs registered by Avdhutwadi Police Station against bank officials and borrowers.
• The bank's license was cancelled by the RBI in 2022.
• A special audit ordered by the state government found that loans were disbursed without proper collateral or repayment assessment.
• The audit found that loan funds were diverted contrary to bank bye-laws and RBI guidelines.
• A fraud of Rs. 242 Crore was found to have been committed by the Chairperson and bank officials in collusion with loan beneficiaries.
• The Law Enforcement Agency (LEA) has filed a Chargesheet in the case.
• Searches revealed that loan money was siphoned for personal use, withdrawn in cash, used for ever-greening loans, or transferred to bank officials as kickbacks.
• Bank officials used existing borrowers' credentials to open dummy loan accounts and manipulated property valuations.
• Incriminating documents, including property documents, were seized.
• Further investigation is under progress.

Also in the document

• The bank was originally registered under section 9(1) of the Maharashtra Coop Societies Act, 1960.
• The press release is dated 06/10/2026.