The Enforcement Directorate (ED) conducted searches at seven locations in Hyderabad as part of an investigation into alleged bank fraud in AP Mahesh Cooperative Urban Bank Ltd. The action was taken under the Prevention of Money Laundering Act (PMLA), 2002.
During the raids, the ED recovered cash amounting to ₹1 crore, jewellery worth ₹4.27 crore, $6,256, property documents, bank locker keys, and incriminating documents and digital devices.
The investigation was initiated based on FIRs lodged by Banjara Hills police against bank chairman Ramesh Kumar Bung, Umesh Chand Asawa, Puroshatamdas Mandhana, and others. These FIRs allege the disbursement of over ₹300 crore in loans against illegal collateral, such as Wakf Board lands and non-existent properties, with a commission of up to 10% charged to borrowers. The accused are also suspected of siphoning off ₹ 18.30 crore for the bank’s head office construction, misappropriating of ₹6.5 crore through fake bills, and issuing gold loans to 1,800 dummy individuals and entities to manipulate voting.
The ED investigations uncovered significant irregularities in loan sanctioning, account operations, and closures. Properties were acquired by the accused and their family members at significantly discounted rates, often below even the bank’s own valuations. Suspicious transactions between borrowers and the accused, including the routing of loan funds back to the accused, were also detected. In several cases, properties of borrowers were found to have been acquired by the accused through undervalue, and properties pledged as collateral were also purchased by them at low rates.
In addition to the main accused, the ED also searched the premises of their alleged accomplices identified during the investigation. The agency is continuing its probe into the matter.
