AP Mahesh: Bung accused of making money in construction of Banjara Hills office

Bhagwati Baldewa-Ramesh Bung

The leading UCB from Andhra Pradesh AP Mahesh Urban Cooperative Bank is going to elect a new Board this Sunday. The heat of elections has picked up with the two Panels led by Ramesh Bung and Bhagwati Baldewa trading unsavoury charges against each other.

These panels namely Sansthapak Panel and Founder Panel headed by Ramesh Bung, and Bhagwati Baldewa respectively have fielded 15-15 candidates each. For the 15 posts of board members, 35 candidates are contesting the election in total. The election is scheduled for 20th December 2020.

With the announcement of the final list, Bhagwati Baldewa is accusing Ramesh Bung and his associates of indulging into various wrong doings. One of her charges is that Bung made money in the construction of the bank’s headquarters at Banjara Hills.

Baldewa also alleged that Bung had put his relatives on the board in order to exercise complete control over the bank. Substantiating her allegation, she said Bung had adjusted his daughter CS Suman Heda as a professional director. Not only that, he has packed his election panel with candidates who are his close relatives including his wife’s brother Srinivas Asawa, Cousin brother Srigopal Bung and some others, stated Mrs Baldewa.

Denying the charge, Bung retorted if she had any proof of it. We have been doing our work in a most transparent manner and her accusations are nothing more than her figment of imagination, he said.

On his relatives being made Directors, Bung said out of 15 candidates in our panel, 10 earlier belonged to Baldewa group but seeing our team’s working they have joined us. She is making baseless allegations as all our director candidates are professionals and industrialists, he asserted.

Admitting that only one director Kamal Rathi left his camp to join the Baldewa panel, Bung asked if we are not working in the interest of the bank then why is the old team supporting us?

Bung also explained the issue of Rs 6 crore loan to one of the outgoing directors Om Prakash Jakhotia, which Mrs Baldewa had accused of being against RBI norms. “In 2016, Bung had given a loan of about Rs 6 crore to Jakhotia which was shown Nil in the bank’s annual report. Jakhotia paid the loan only last month for contesting the election “, she alleged.

Dismissing her charges, Bung said Jakhotia is a valuable customer for 30 years and for giving the loan we had taken the permission of the RBI. Besides, the apex bank used to give A grade to our bank not for nothing, he countered.

Unstoppable Baldewa also reminds Bung and his team of failing to fulfil the promise of achieving the business mix of Rs 10 k crore by 2020. “Today the bank’s business mix is only Rs 4k crore. The bank has not made efforts for growth,” Baldewa complained.

“Is she asking us to give a big loan to anyone, as PMC bank has done? Having a bigger business mix is not our target, but gaining faith of customers is on the top of our agenda”, retorted Bung.

When I became the Chairman in 2005 the business was over Rs 500 crore and now the business mix is Rs 4,400 crore. In 2015 the gross NPA was 15 percent and now it is less than 3 percent, Bung asserted.

It bears recall that the filing of nomination papers was held on 7 December and the list of nominations was published on 9 December 2020. Scrutiny and Withdrawal were held on 10 December 2020 and 11 December 2020 respectively. The polling will be held on 20 December and counting of voters and declaration of result would be on 21 December 2020.

More charges and counter charges are on the way. Stay glued to Indian Cooperative to know them sooner than later.

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