ED Attaches Properties Linked to AP Mahesh Bank Case

Properties worth ₹1.1 crore attached

Directorate of Enforcement (ED), Hyderabad Zonal Office, has provisionally attached two immovable properties valued at ₹1.1 crore under the Prevention of Money Laundering Act (PMLA), 2002. The properties, located at Adibatla Village in Ibrahimpatnam Mandal of Ranga Reddy district, are registered in the name of Rohit Asawa, son of Umesh Chand Asawa, the then Managing Director and CEO of AP Mahesh Cooperative Urban Bank.

Loans, commissions and concealment of assets

The case stems from two FIRs registered at Banjara Hills Police Station against senior officials of the bank — including former Chairman Ramesh Kumar Bung, former MD & CEO Umesh Chand Asawa, and former Senior Vice-Chairman Puroshatamdas Mandhana — for allegedly misusing their positions to sanction loans to ineligible borrowers on the basis of illegal or non-existent collaterals. Investigations revealed that Umesh Chand Asawa sanctioned loans to M/s Biomax Fuels Ltd. and group companies by accepting disputed third-party properties as collateral. He allegedly collected 2%-4% commission amounting to ₹1.10 crore in cash as kickbacks, which were then invested in properties purchased in his son’s name.

The ED found that the sale deeds concealed the actual purchase value, showing them as ₹26.70 lakh while their market value exceeded ₹1.5 crore. The cash was allegedly mingled with legitimate funds through banking channels to disguise the proceeds of crime. Further investigation is underway.