ED unearths Rs 300-crore loan scam at AP Mahesh Cooperative Urban Bank
ED seized Rs 1 crore cash, Rs 4.27 crore jewellery, USD 6256, property documents, bank keys, and digital devices in Hyderabad raids.
HYDERABAD: The Directorate of Enforcement (ED) has uncovered a massive loan scam involving Rs 300 crore at the AP Mahesh Cooperative Urban Bank Ltd.
The scam was revealed during search operations conducted on July 31 at seven locations in Hyderabad under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
During the raids, the ED seized cash amounting to Rs. 1 crore, jewellery worth Rs. 4.27 crore, foreign currency equivalent to USD 6256, property documents, bank locker keys, incriminating documents, and digital devices. The investigation was triggered by multiple FIRs filed by the Banjara Hills Police Station against key figures, including Ramesh Kumar Bung, Chairman of A.P. Mahesh Cooperative Urban Bank, Umesh Chand Asawa, Puroshatamdas Mandhana, and others.
The accused are alleged to have disbursed loans worth over Rs. 300 crore using illegal collaterals, including Wakf Board lands and non-existent properties while charging a commission of up to 10% from borrowers. Additionally, the FIRs accused them of siphoning off Rs. 18.30 crore for constructing the bank's head office and Rs. 6.5 crore through fraudulent bills, alongside disbursing gold loans to 1800 dummy entities.
The ED's investigation revealed extensive irregularities in the sanctioning and operation of loans. Properties acquired by the accused and their families were found to be purchased at significantly undervalued rates, sometimes below the bank-approved rates at the time of loan sanction. Suspicious transactions indicated that loan funds were routed back to the accused and their families. In some cases, properties belonging to loanees were acquired by the accused at rates far below market value, including collateral securities.
Further searches were conducted at the premises of other individuals suspected of being involved in the scam as part of the ongoing investigation. The ED continues to probe the full extent of the financial misconduct involved in this case.