ED initiated investigation on the basis of two FIRs registered at PS Banjara Hills against senior officials of the UCB for misusing their official positions and disbursing loans to various ineligible borrowers
FinTech BizNews Service
Mumbai, September 2, 2025: Directorate of Enforcement (ED), Hyderabad Zonal Office has provisionally attached two immovable properties worth Rs. 1.1 Crore under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in connection with an ongoing investigation regarding irregularities by office bearers of AP Mahesh Cooperative Urban Bank, as per a press release issued by the ED today.
The attached properties are situated at Adibatla Village, Ibrahimpatnam Mandal, Ranga Reddy Distt. and held in the name of Rohit Asawa S/o Umesh Chand Asawa, the then MD & CEO of AP Mahesh Cooperative Urban Bank. ED initiated investigation on the basis of two FIRs registered at PS Banjara Hills against senior officials of AP Mahesh Co-operative Urban Bank Ltd. namely Mr. Ramesh Kumar Bung, the then Chairman; Umesh Chand Asawa, the then MD & CEO and Puroshatamdas Mandhana, the then Senior ViceChairman & unknown others for misusing their official positions and disbursing loans to various ineligible borrowers against their illegal collaterals, non-existent properties and in return, charging commission for disbursement of such illegal loans from the loanees.
Further, from the said commission, the accused were suspected to have acquired several immovable properties in the name of themselves and their family members. ED investigation revealed that Umesh Chand Asawa, during his tenure as Managing Director of AP Mahesh Bank, misused his official position to sanction loans to one M/s Biomax Fuels Ltd. & its group concerns by accepting third-party property as collateral, which was already under litigation, against the loans sanctioned and charged 2%-4% commission of the total loan amount disbursed.
Umesh Chand Asawa, charged commission totalling to Rs. 1.10 Crore in cash from the MD of M/s Biomax Fuels Ltd as quid-pro-quo / kickback for sanctioning the otherwise ineligible loan and thereby generated Proceeds of Crime (POC).
ED investigation further revealed that the cash so collected was infused in the purchase of two immovable properties in the name of his son, by concealing the actual purchase consideration in the sale deeds. The properties were shown to have been purchased for Rs. 26.70 Lakh (approx.) whereas their prevailing market value was more than Rs. 1.5 Crore.
The POC generated by Umesh Chand Asawa were found to be invested in the said properties through clandestine cash payments, to intermingle the illegitimate money/ POC with legitimate funds remitted through regular banking channels and obfuscate the money trail. Further investigation is under progress.
