Raids at AP Mahesh Cooperative bank: ED probe reveals large scale irregularities in sanction of loans, operation by top execs

Hyderabad: The Enforcement Directorate (ED) carried out search operations in at seven locations of AP Mahesh Cooperative Urban Bank Ltd in Hyderabad on Wednesday in connection with alleged violations of provisions of the Prevention of Money Laundering Act (PMLA), 2002.

During the search operations, cash amounting to Rs 1 Crore, jewellery worth Rs. 4.27 Crore, foreign currency $6256, property documents, bank locker keys, incriminating documents and digital devices were seized.

ED initiated investigation on the basis of various FIRs registered by Banjara Hills police station against AP Mahesh Co-operative Urban Bank, chairman, Ramesh Kumar Bung, Umesh Chand Asawa, Puroshatamdas Mandhana and others for disbursing loans of more than Rs. 300 Crore to various persons and entities against illegal collaterals such as Wakf Board lands and non-existent properties by charging a commission of up to 10pc from the loanees for disbursement of such illegal loans.

The FIRs also alleged siphoning off Rs 18.30 Crore in construction of Head Office building of the bank, siphoning off Rs. 6.5 Crore through false bills, disbursal of gold loans to 1800 dummy persons and entities through fraudulent means, enrolling them as members and getting votes casted in their favour whereas such gold loanees were ineligible for voting.

ED investigation revealed large scale irregularities in the sanction of loans, operation of the loan accounts and their closure. Properties were found to be acquired by the accused and their family members at values significantly lower than the prevailing market rates and in some instances, at rates lower than the valuation arrived at by the bank at the time of sanction of the loans in the past.

Investigation also revealed suspicious transactions between loanees and the accused and their family members. Routing of loan funds back to the accused and their family members from the loanees accounts was revealed. In several cases, properties of loanees were found to have been acquired by the accused and their family members at rates much below their actual values.

Properties pledged as collateral securities were also found to be acquired by the accused and their family members at very low rates. In addition to the main accused, searches were also conducted at the premises of their accomplices who were identified during investigation and are suspected to be involved in the offence of money laundering.

Further investigation is under progress.