Bank of Maharashtra's Controversial Pune Lease Deal Faces Scrutiny
Pune, 10th April 2026: A controversy has surfaced over the Bank of Maharashtra’s decision to lease office space in Pune, with allegations of financial irregularities, inflated costs, and lapses in due diligence drawing attention from both Indian and international stakeholders.
The public sector lender entered into a 15-year lease agreement on January 10, 2025, for approximately 1.25 lakh sq ft of plug-and-play office space at the Mont Claire building on Baner-Pashan Link Road. The deal, executed with multiple lessors under a Limited Liability Partnership (LLP) structure, is estimated to cost around ₹1,116 crore, including interest, over the lease tenure.
The issue came to light following a complaint by Vinod Gannu, a US-based individual of Indian origin and a 50% partner in the original developer, Niraj Kumar Associates Pvt Ltd (NKAPL). He has approached the Central Bureau of Investigation (CBI), alleging several irregularities in the transaction.
According to the complaint, the lease was executed without obtaining mandatory No Objection Certificates (NOCs) from original stakeholders or lenders. It also alleges that the rental rates were significantly higher than prevailing market rates, potentially causing a loss of over ₹95 crore to the bank. Further claims include payments for non-existent carpet area and parking spaces, as well as questions over the validity of the LLP resolution authorising the lease, which allegedly required unanimous consent.
Critics have also pointed out that the bank owns vacant land in the vicinity, where a new office building could have been constructed at a substantially lower cost—estimated at around ₹60 crore—offering long-term ownership instead of recurring lease payments.
The matter has attracted political and international attention. Connecticut State Senator Sujata Gadkar-Wilcox has reportedly raised the issue with Indian authorities, including Prime Minister Narendra Modi, Maharashtra Chief Minister Devendra Fadnavis, and the US Embassy in New Delhi. US Senator Richard Blumenthal has also written to the Federal Bureau of Investigation (FBI) seeking attention to the matter.
In India, Lok Sabha MPs Dr. Kalyan Kale and Dr. Shivaji Kalge have written to Union Finance Minister Nirmala Sitharaman, urging an immediate probe into the alleged financial implications. Dr. Kalge, in particular, highlighted the cost disparity compared to constructing a facility on the bank’s own land.
Bank of Maharashtra officials defended the transaction, stating that it followed a transparent tendering process, selected the lowest bidder, and carried out due diligence, including title verification. The bank has maintained that the lease is legally valid, backed by a majority resolution of the LLP’s designated partners.
As of now, no formal investigation has been initiated by the Finance Ministry or the CBI. However, demands for a probe by the Central Vigilance Commission or an independent agency are gaining momentum. The issue has also triggered a broader debate on governance and financial decision-making in public sector banks, particularly in relation to high-value real estate deals.
