ED raids Mahesh Cooperative Bank promoters over Rs. 300 crore scam
HYDERABAD: The Enforcement Directorate (ED) conducted raids at six locations in Hyderabad on Wednesday. Directorate conducted raids targeting the promoters of AP Mahesh Cooperative Bank. These raids are part of an investigation into an alleged fund misappropriation case involving over Rs 300 crores.
The ED conducted searches at the residences and offices of Mahesh Cooperative Bank. Officers include, bank’s Chairman Ramesh Kumar Bung, Managing Director Umesh Chand Asawa, and Vice Chairman Purushottamdas Mandhana. The agency seized a significant amount of unaccounted cash during the operation. Mahesh Cooperative Bank has 45 branches across India. Out of these 35 branches are located in Hyderabad and Secunderabad.
Allegations of forgery and fraud surface
The investigation also led to raids on the properties of Solipuram Venkat Reddy and two others, who are suspected of being involved in money routing operations. These individuals were identified during the ED’s ongoing investigation into the bank’s activities. The raids follow the registration of a money laundering case by the ED, based on FIRs filed by the Hyderabad City Police.
Mahesh Cooperative Bank has 45 branches across India. Out of these 35 branches are located in Hyderabad and Secunderabad.
Earlier, the Banjara Hills police registered two cases against top officials of AP Mahesh Cooperative Urban Bank. The cases accuse the officials of cheating and criminal breach of trust. The FIRs, lodged by Shyam Sunder Biyani, Secretary of the AP Mahesh Cooperative Bank Shareholders Association, allege that the bank’s board members committed fraud during recent general body elections and misappropriated large sums of money from depositors and shareholders.
The allegations against the bank’s leadership are serious. They include forging documents, illegal loan disbursement exceeding Rs 300 crores, and siphoning off Rs 18.30 crores from the bank. Despite multiple complaints and directives from the state government, the police had initially refrained from filing FIRs against these officials. However, the Supreme Court recently lifted the stay on the investigation, paving the way for the ED’s current action.
