ED Attaches ₹1.1 Crore Assets in AP Mahesh Bank Case

Swift Summary

• The Enforcement Directorate (ED), Hyderabad zonal office, has provisionally attached two immovable properties worth ₹1.1 crore in Adibatla village,Rangareddy district.
• These properties are registered in the name of Rohit Asawa, son of Umesh Chand Asawa, former MD and CEO of AP Mahesh Cooperative Urban Bank.
• The action stems from an investigation into financial irregularities at the bank based on two FIRs filed at Banjara Hills police station.
• Senior officials, including Umesh Chand Asawa and others like ramesh Kumar Bung (former Chairman) and Puroshatamdas Mandhana (former Senior Vice Chairman), are accused of exploiting their positions to sanction loans based on illegal collateral and nonexistent assets for commissions.
• Investigators allege that proceeds from such activities were used to procure several properties in the names of family members or associates.
• ED claims Umesh Chand asawa approved loans for Biomax Fuels Ltd.using litigious third-party property as collateral and received a 2%-4% commission amounting to ₹1.1 crore from Biomax’s managing director as kickbacks.
• Illicit funds were reportedly disguised by merging them with legitimate money through banking channels before being used for real estate purchases valued higher than their documented sale price in official deeds.
• Further investigations remain ongoing.

Indian Opinion Analysis

The ED’s attachment of assets underscores its proactive approach toward combating financial corruption within cooperative banks-an issue that can undermine trust among depositors and investors alike. Allegations of senior executives exploiting their positions raise serious questions about institutional governance practices at AP Mahesh Cooperative urban Bank. If proven true, such actions not only violate ethical standards but also pose risks to broader financial stability by enabling misuse within what is often considered a safe local-level banking ecosystem.

The reported intermingling of illicit proceeds with legitimate finances highlights vulnerabilities in existing anti-money laundering frameworks-as high-value transactions passed through regular channels could evade scrutiny until deeper probes unveil irregularities. While this investigation continues to unfold, it carries broader implications for regulatory oversight mechanisms across India’s cooperative banking sector-a space crucial for small-scale economies yet potentially more susceptible to operational lapses owing to less stringent supervisory norms compared with larger commercial banks.

Further vigilance remains necesary not just for punitive action but also long-term structural reforms aimed at safeguarding public interests against similar incidents elsewhere.

Read More: Published – September 02,2025 @ IST