MUMBAI: An inquiry by Mumbai Police’s Economic Offence Wing has brought renewed scrutiny to the functioning of a cooperative credit society, where investigators allege that forged documents and manipulated loan records were used for more than a decade to siphon off nearly ₹18 crore.
A Long Trail of Alleged Deception
When officers from the Economic Offence Wing (EOW) began examining records at Sumitra Sahakari Patpedhi Ltd., a cooperative credit society based in Mumbai, they were not looking at a single transaction gone wrong. According to investigators, they were confronting a pattern that stretched back to 2010 and continued until March 31, 2024.
The police allege that a group of office-bearers and associates worked in concert to defraud the society of ₹17,88,82,225. The alleged scheme, detailed in a first information report (FIR), centers on the fabrication of loan applications and the forging of members’ signatures—often without their knowledge or consent. These documents, police say, were used to secure loan sanctions that appeared legitimate on paper but were later misappropriated for personal gain.
For members of the credit society, the suspected fraud unfolded quietly, embedded in routine financial paperwork and annual statements, leaving little outward sign of the losses accumulating within the institution.
Forged Loans and False Clearances
Investigators say the alleged misconduct went beyond the sanctioning of fraudulent loans. In some cases, borrowers were reportedly granted loans in violation of established norms. In others, members who repaid their dues in full were allegedly issued false loan clearance certificates.
According to the police, the repayments made by these members were not deposited into the cooperative society’s accounts. Instead, the funds were allegedly siphoned off by those managing or controlling the transactions. This dual manipulation—illegal lending on one side and diversion of repayments on the other—formed the backbone of what investigators describe as a systematic financial drain.
The alleged use of forged signatures and falsified account entries has raised questions about internal controls within cooperative credit societies, which often rely heavily on trust, handwritten records, and limited external audits.
The FIR and the Criminal Charges
The case was formally registered on January 7 at Dr. D.B. Marg Police Station in Mumbai. The FIR invokes a wide range of provisions under the Indian Penal Code, reflecting the complexity of the alleged offences.
These include Section 409 (criminal breach of trust), Section 420 (cheating), Sections 465, 467, 468 and 471 (forgery and use of forged documents), Section 477A (falsification of accounts), as well as Sections 120B and 34, which deal with criminal conspiracy and common intention.
The complaint was filed by Santosh Gangaram Shingwan, who alleged that as many as 13 individuals were involved in orchestrating and executing the fraud. Police officials say the breadth of charges reflects the alleged coordination required to sustain such activities over more than a decade.
Thirteen Accused, Investigation Continues
The FIR names 13 accused: Rajaram Govind Gorivale, Pandurang Sayaji Thore, Sudhakar Kanhu Misal, Mahadev Sakharam Jadhav, Pravin Shantaram Ghag, Milind Bacchu Ambekar, Simran Mangesh Patade, Anil Babu Gamare, the now-deceased Sunanda Shankar Jadhav, Sunil Dattatray Kudekar, Avinash Madhav Gadre, Manohar Shankar Lale, and Amol Manohar Lale.
According to the police, further investigation is underway to trace the flow of funds, examine the authenticity of loan documents, and determine the precise roles played by each accused. Officers from the EOW are scrutinizing account books, clearance certificates, and member records to establish how the alleged fraud was executed and sustained.
