ED conducts searches under PMLA act in Hyderabad for bank fraud case

During the search operations, cash of Rs.1 crore, jewelry worth Rs.4.27 crore, foreign currency, property documents, digital devices and other incriminating material were seized.

Hyderabad: Directorate of Enforcement (ED), Hyderabad team conducted searches under the provisions of Prevention of Money Laundering Act (PMLA), at seven locations in Hyderabad in the case of bank fraud in AP Mahesh Cooperative Urban Bank Ltd., on Wednesday.

During the search operations, cash of Rs.1 crore, jewelry worth Rs.4.27 crore, foreign currency, property documents, digital devices and other incriminating material were seized.

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The ED initiated investigation on the basis of various FIRs registered by Banjara Hills police against Ramesh Kumar Bung, Chairman of A.P. Mahesh Co-operative Urban Bank, Umesh Chand Asawa, Puroshatam Das Mandhana and others for disbursing loans of more than Rs. 300 crore to various persons and entities against illegal collaterals such as Wakf Board lands and non-existent properties by charging a commission of up to 10 per cent from the customers for disbursement of such illegal loans.

The FIRs also alleged siphoning off Rs.18.30 crore in construction of Head Office building of the bank; siphoning off Rs. 6.5 crore through false bills; disbursal of gold loans to 1800 dummy persons and entities through fraudulent means, enrolling them as members and getting votes casted in their favour whereas such gold loan customers were ineligible for voting.

ED investigation revealed large scale irregularities in the sanction of loans, operation of the loan accounts and their closure. Properties were found to be acquired by the suspects and their family members at values significantly lower than the prevailing market rates and in some instances, at rates lower than the valuation arrived at by the bank at the time of sanction of the loans in the past.

Investigation also revealed suspicious transactions between customers and the suspects and their family members. Properties pledged as collateral securities were also found to be acquired by the suspects and their family members at very low rates.

In addition to the main suspects, searches were also conducted at the premises of their accomplices who were identified during investigation and are suspected to be involved in the offence of money laundering.