In a significant development, BJP MP Medha Vishram Kulkarni met Union Home and Cooperation Minister Amit Shah at his residence recently to highlight serious financial and administrative irregularities at Yashwant Co-operative Bank Ltd, headquartered in Satara, Maharashtra. She sought Shah’s help in securing the return of depositors’ hard-earned money, which she said was at grave risk due to rampant mismanagement.
Additionally, raising alarm over an alleged large-scale loan scam, Kulkarni demanded a CBI inquiry and the immediate appointment of an RBI-nominated administrator to safeguard the interests of thousands of depositors. She was accompanied by whistleblower Sanjeev Dattatraya Kulkarni, who submitted a comprehensive complaint outlining the scale of irregularities.
Sanjeev alleged that his name had been falsely included as a guarantor in a loan proposal originally made in the name of his brother, Shrikant Dattatraya Kulkarni. However, the loan amount of Rs 48 lakh was disbursed to another individual, Sayali Shellar, on 31 March 2017. The complaint further alleges that mortgage documents were fraudulently executed on 4 April 2017, using forged 7/12 land extracts, days after the funds were already disbursed. Tragically, on 6 April 2017, Shrikant Kulkarni died by suicide, reportedly unable to cope with the financial and emotional fallout.
The complaint implicates former chairman and BJP leader Shekhar Suresh Charegaonkar, who held office between 2014 and 2019 in masterminding the fraud. It is alleged that he, along with his two brothers, floated nearly 50 benami and fictitious companies to siphon off over Rs 100 crore in loans, with no intent to repay.
The financial mismanagement has pushed the bank into a crisis, with non-performing assets (NPAs) reportedly crossing 50%, leaving the bank unable to honor withdrawal requests from depositors and investors.
Further allegations suggest that Charegaonkar used the misappropriated funds to purchase properties worth Rs 70 crore in Dapoli (Ratnagiri), Pune, and Karmala (Solapur). He and his family are also said to have borrowed over Rs 100 crore from more than 15 other cooperative banks, including the Chikhali Urban Co-op Bank (Buldhana), The Wai Urban Co-op Bank, and The Warana Sahakari Bank (Kolhapur)—posing a threat to the financial health of the broader cooperative banking sector.
Sources claim that these transactions were facilitated through political connections and were able to evade regulatory oversight. The gravity of the situation is underscored by the registration of two FIRs against Charegaonkar and other directors in Pune and Karad. Moreover, audit reports for the last three years have consistently flagged major financial discrepancies. Government auditors have pegged the bank’s current losses at Rs 62 crore.
Adding to the seriousness of the issue, the latest audit report for FY 2023–24 paints a grim financial picture of the Yashwant Co-operative Bank. The bank’s paid-up share capital stood at Rs 9.18 crore, while reserve funds (excluding BDDR) were Rs 8.44 crore. The net worth was reported at a negative Rs 5.11 crore, indicating severe capital erosion. Deposits were recorded at Rs 190.85 crore, and advances at Rs 181.79 crore.
The total balance sheet stood at Rs 285.68 crore, with contra items amounting to Rs 55.70 crore. The bank reported an accumulated loss of Rs 22.69 crore and a net working capital of Rs 207.29 crore. The Capital to Risk-weighted Assets Ratio (CRAR) was critically low at -3.44%, according to the bank’s own records.
However, the auditors presented an even more alarming scenario. The loss for FY 2023–24 was pegged at Rs 65.46 crore (against the bank’s claim of Rs 22.69 crore), gross NPAs were reported at 63.91% (bank: 54.31%), and net NPAs at 58.75% (bank: 47.78%). The audit also pointed out a provision shortfall of Rs 42.77 crore. The CRAR as per the auditor was a deeply negative -30.76%, and the net worth stood at a negative Rs 47.96 crore—underscoring the bank’s precarious financial health.
Citing these alarming figures, MP Medha Kulkarni has urged the Home and Cooperation Minister to direct the Reserve Bank of India (RBI) to impose urgent regulatory action. Her demands include the initiation of a CBI probe, appointment of an independent administrator, and relief measures for affected depositors.
“The cooperative banking sector must be safeguarded from such exploitation. If such incidents go unaddressed, it will erode public trust and tarnish the image of the cooperative movement,” Kulkarni warned.
