ED Cracks Down on Hyderabad Bank Fraud: Rs. 1 Crore Cash and Rs. 4.27 Crore Jewelry Seized.
01 August 2024
On July 31, 2024, the Directorate of Enforcement (ED) in Hyderabad conducted searches under the Prevention of Money Laundering Act (PMLA) at seven locations related to a bank fraud case involving the A.P. Mahesh Cooperative Urban Bank Ltd. During these operations, authorities seized Rs. 1 crore in cash, Rs. 4.27 crore worth of jewelry, USD 6,256 in foreign currency, property documents, bank locker keys, incriminating documents, and digital devices.
The investigation was initiated based on multiple FIRs filed by Banjara Hills Police Station against key figures including Ramesh Kumar Bung, Chairman of the bank, Umesh Chand Asawa, and Puroshatamdas Mandhana. These FIRs allege that they disbursed over Rs. 300 crore in loans against illegal collaterals like Wakf Board lands and non-existent properties, charging up to 10% commission from borrowers. Additional allegations include misappropriation of Rs. 18.30 crore in constructing the bank’s Head Office, fraudulent siphoning of Rs. 6.5 crore through false bills, and illegal gold loans issued to 1,800 ineligible individuals for voting purposes.
The ED's investigation uncovered significant irregularities in loan approvals and operations, including the acquisition of properties by the accused and their families at undervalued rates. Suspicious transactions and the return of loan funds to the accused were also discovered. Searches were extended to accomplices suspected of participating in money laundering activities.