Mumbai, June 29: Chairman and Managing Director of Bank of Maharashtra Ravindra Marathe and Executive Director RK Gupta have been stripped off their power with effect from today in connection with a case related to wrong disbursement and sanctioning of an amount to Pune based builder DS Kulkarni.

Bank of Maharashtra (BoW), CEO & MD Ravindra Marathe along with executive director RK Gupta were arrested in the Rs 3,000 crore DSK Group loan default case. Marathe was arrested for allegedly misusing his power in sanctioning loans to shell companies.

According to a statement issued by Pune EoW, "Bank officers colluded with DSK Developers Ltd by misusing their power & authority with dishonest and fraudulent intention to sanction & disburse the amount of bank under the garb of loan which was siphoned off."

Reportedly, BoM Executive Director Rajendra Gupta, DSK chartered accountant Sunil Ghatpande and DSK VP Engineering Department Rajiv Newaskar were arrested from Pune while ex-CMD Sushil Muhnoot was arrested from Jaipur. The bank’s Zonal Manager Nityanand Deshpande was arrested from Ahmedabad, the police said in a statement. All the persons arrested have been booked for cheating, forgery, criminal conspiracy, criminal breach of trust among others.

On June 27, a special Pune court had granted bail to Bank of Maharashtra's Managing Director and CEO Ravindra Marathe in a cheating case involving city-based real estate developer D S Kulkarni and his wife, among others.

Judge S N Sardesai of the special court set up under the Maharashtra Protection Of Interest Of Depositors (MPID) Act granted the relief to Marathe on a surety bond of Rs 50,000. While granting bail to Marathe, the court remanded other persons arrested in the case in judicial custody for 14 days.

(The above story first appeared on LatestLY on Jun 29, 2018 08:56 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).