Bank of Maharashtra CMD’s powers withdrawn

Mubarak Ansari
Saturday, 30 June 2018

Powers of executive director were also taken back

Pune: The Bank of Maharashtra (BoM) on Friday announced that all the functional powers of CMD Ravindra Marathe and Executive Director RK Gupta were taken away. The move follows their recent arrest in connection with the alleged DSK scam. 

The Pune-headquartered public sector bank informed the BSE and the NSE about the development. 

“In view of the recent developments, this is to inform you that the Board of Directors of Bank in its meeting held on June 29, 2018, has decided that RP Marathe, Managing Director & CEO and Shri RK Gupta, Executive Director of Bank be divested of all functional responsibilities of the Bank with immediate effect.

Further, it has been decided Shri A C Rout, Executive Director of Bank be entrusted with all the functional responsibilities of Managing Director & CEO and other Executive Director and the Department of Financial Services, Ministry of Finance, Government of India be requested to make suitable arrangements for smooth functioning of the Bank,” Chandrakant Bhagwat, Company Secretary and Compliance Officer said in the letter. A two-member team from the Union Finance Ministry had come to Pune on Friday and after a meeting the decision was taken. 

Earlier on June 20, the Economic Offences Wing of Pune city police had arrested Marathe, former CMD Sushil Muhnot, Executive Director Rajendra Gupta and Zonal Manager Nityanand Deshpande in connection with an allegedly illegal loan given to DSK Group by the concerned officials. City-based real estate developer DS Kulkarni, his wife and others are facing charges for duping people to the tune of Rs 2,043 crore. 

Marathe was granted bail on Wednesday, while Muhnot, Gupta and Deshpande were released on bail from Yerwada Central Jail on Friday. Muhnot was sacked by the Central government from CMD post of the bank. 

The FIR against them is registered with Shivajinagar police station for offences under sections 120(B) (criminal conspiracy), 406 (criminal breach of trust), 420 (cheating) and other sections of the Indian Penal Code (IPC). Besides, they have been booked under Section 3 and 4 of the Maharashtra Protection of Investor Deposits Act. 

IO admitted in hospital due to stress 
- On Friday morning, ACP Nilesh More who is the investigating officer in the DSK fraud case, had to be admitted to a private hospital, after he complained of uneasiness and chest pain. Officials said his condition had deteriorated due to ‘stress’ and he is stable now. 
- A senior police officer told Sakal Times, “Since the arrest of the BoM officials, there was tremendous pressure to get them released. We have all the evidence against the accused persons. Even then, there was pressure and we had to give in writing in court that the accused persons can be released as investigation is over.”

Related News