ED attaches assets in AP Mahesh Co-op bank money laundering probe
Hyderabad: The Enforcement Directorate (ED), Hyderabad Zonal Office, has provisionally attached two immovable properties worth Rs. 1.1 crore in connection with an ongoing investigation pertaining to irregularities by office-bearers of AP Mahesh Cooperative Urban Bank.
The attachment was made under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The attached properties are located at Adibatla Village, Ibrahimpatnam Mandal, Ranga Reddy District and are held in the name of Rohit Asawa S/o Umesh Chand Asawa, the then MD & CEO of AP Mahesh Cooperative Urban Bank.
The Anti-money laundering agency initiated an investigation based on the two FIRs registered at PS Banjara Hills against senior officials of AP Mahesh Co-operative Urban Bank Ltd., specifically Ramesh Kumar Bung, the then Chairman, Umesh Chand Asawa, the then MD and CEO, and Puroshatamdas Mandhana, the then Senior Vice-Chairman, and 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 the disbursement of such illegal loans from the loanees. Further, from the said commission, the accused were presumed to have acquired several immovable properties in the names of themselves and their family members.
Premier central agency’s 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. and 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 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)," said the ED in a statement.
Further ED investigation 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 was 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.
