MAY 30: Chairman of Abhyudaya Cooperative Bank Sitaram Ghandat and four others were arrested while one official is absconding following the rejection of their bail applications today.

The Economic Offences Wing of the police arrested Ghandat, vice-chairman Stanislaus Saldanha, and directors Bhima Shivdikar, Achyut Kandpile, and Yashwant Shinde. Another accused, Mhatarba Kane, is absconding.

Earlier, the Bombay High Court rejected the anticipatory bail applications of the six officials of the bank but granted bail to two female directors.

The applications, which had been rejected by the City Civil and Sessions Court, came up for hearing before the vacation judge, Justice D K Deshmukh today. The six are accused of misappropriation of bank funds and illegal handling of real estate.

They were represented by advocate Adhik Shirodkar while Dhairyasheel Nalavade appeared for the state government.

Nalavade argued that the accused had committed a Rs 4.68-crore scam, especially with regard to the acquisition of bank premises in Andheri, Kandivali, Worli, Airoli and Nerul. So there were prima facie reasons for keeping them in custody.

The court ruled that the officials were ``influential'' persons in society and in a position to put pressure on bank employees and other witnesses who were ready to give evidence.

The court granted bail of Rs 50,000 each to two women directors, Jessie D'Silva and Ratnamala Gorde. They will have to appear report to the police as when summoned.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.