ED attaches properties worth Rs. 1.1 crore in AP Mahesh Cooperative Bank case

The Enforcement Directorate (ED), Hyderabad zonal office, has provisionally attached two immovable properties valued at ₹1.1 crore in connection with its probe into financial irregularities at AP Mahesh Cooperative Urban Bank. The properties, located in Adibatla village of Ibrahimpatnam mandal in Rangareddy district, are held in the name of Rohit Asawa, son of Umesh Chand Asawa, the former Managing Director and Chief Executive Officer of the bank.

The action follows two FIRs registered at the Banjara Hills police station against senior officials of the bank, including former Chairman Ramesh Kumar Bung, former MD and CEO Umesh Chand Asawa, former senior Vice Chairman Puroshatamdas Mandhana, and others. The officials are accused of abusing their positions to sanction loans to ineligible borrowers on the basis of illegal collateral and non-existent properties, in return for commissions from loan recipients. Investigators believe the proceeds were used to acquire several immovable properties in the names of the accused and their family members.

According to the ED, its investigation revealed that Umesh Chand Asawa sanctioned loans to Biomax Fuels Ltd. and its group companies by accepting a third-party property as collateral, despite the property already being under litigation. In return, he allegedly charged a commission of between 2% and 4% of the sanctioned loan amount. Asawa received ₹1.1 crore in cash from the managing director of Biomax Fuels Ltd. as quid-pro-quo (or kickback) for approving the loans, generating what the agency has termed proceeds of crime.

The ED further stated that the cash was channelled into the purchase of two immovable properties in the name of his son. While the sale deeds reflected a purchase price of around ₹26.7 lakh, the actual market value was estimated at over ₹1.5 crore. The agency said the illicit funds were intermingled with legitimate money routed through regular banking channels in order to disguise their origin and conceal the money trail.

Further investigation into the case is underway.