The board of Bank of Maharashtra has relieved CEO and MD Ravindra Marathe along with Executive Director Rajendra Gupta of all their functional responsibilities.
According to a regulatory filing by the bank, Executive Director A C Rout has been entrusted with the responsibilities of MD, CEO and Executive Director.
The department of financial services from the Ministry of Finance has been requested to make arrangements for the functioning of the bank.
In another development, a Sessions Court in Pune granted bail to Gupta and its deputy general manger NS Deshpande.
Marathe, along with five others have been arrested for allegedly extending fraudulent loans to Pune-based DSK Group, police said.
Marathe was arrested for misusing powers in sanctioning loans to shell companies. The bank had extended loans on the same property three to four times, sources said.
According to a police statement, officials at the bank colluded with DSKDL by misusing their power and authority with dishonest and fraudulent intention to sanction and disburse the amount of bank under the garb of loan which was allegedly siphoned off.
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