ED Raids Uncover Massive Bank Fraud in Hyderabad: Rs. 1 Crore Cash, Rs. 4.27 Crore Jewelry Seized In High-Stakes Investigation
(Judicial Quest News Network)
Hyderabad, 02-08-2024
On July 31, 2024, the Directorate of Enforcement (ED) in Hyderabad executed a series of search operations at seven different locations within the city. These searches were conducted under the Prevention of Money Laundering Act (PMLA), 2002, as part of an investigation into a significant bank fraud involving the A.P. Mahesh Cooperative Urban Bank Ltd.
During these extensive search operations, the ED successfully seized a substantial cache of assets. This included cash totaling Rs. 1 Crore, jewelry valued at approximately Rs. 4.27 Crore, and foreign currency amounting to USD 6,256. Additionally, property documents, bank locker keys, incriminating documents, and various digital devices were confiscated.
The investigation was initiated following several FIRs filed by the Banjara Hills Police Station. The FIRs named prominent figures including Ramesh Kumar Bung, Chairman of A.P. Mahesh Co-operative Urban Bank, alongside Umesh Chand Asawa, Puroshatamdas Mandhana, and other associates. These individuals were accused of orchestrating a fraudulent scheme involving the disbursement of over Rs. 300 Crore in loans. The loans were granted against illegal collaterals, such as Wakf Board lands and fictitious properties. The bank officials allegedly charged a commission of up to 10% from the borrowers for processing these illicit loans.
The FIRs also detailed allegations of embezzlement and misappropriation. Specifically, Rs. 18.30 Crore was reportedly siphoned off during the construction of the bank’s Head Office building, while an additional Rs. 6.5 Crore was misappropriated through the use of false bills. Furthermore, gold loans were fraudulently issued to 1,800 dummy individuals and entities, who were then wrongfully enrolled as bank members and cast votes in favor of the accused, despite their ineligibility.
The ED’s investigation uncovered extensive irregularities in the loan approval process, the operation of loan accounts, and their subsequent closure. It was revealed that properties acquired by the accused and their family members were purchased at significantly below the market rate, and in some instances, at values lower than those estimated by the bank at the time the loans were sanctioned. The investigation also identified dubious transactions between the loan recipients and the accused, indicating a pattern of funneling loan funds back to the accused and their relatives.
In numerous cases, properties pledged as collateral were acquired by the accused and their families at much lower prices than their actual worth. The search operations extended to the premises of the accused’s accomplices, who were identified during the investigation and are suspected of involvement in the money laundering scheme.
The investigation is ongoing, with further inquiries aimed at uncovering the full extent of the fraudulent activities and bringing those responsible to justice.
