The Directorate of Enforcement (ED), Hyderabad Zonal Office, has provisionally attached two immovable properties valued at Rs 1.1 crore under the Prevention of Money Laundering Act (PMLA), 2002. The action comes in connection with alleged irregularities by former office bearers of AP Mahesh Cooperative Urban Bank.
The attached 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 former Managing Director and CEO of the bank.
The ED launched its investigation based on two FIRs registered at Banjara Hills Police Station against senior bank officials, including then Chairman Ramesh Kumar Bung, then MD & CEO Umesh Chand Asawa, and then Senior Vice-Chairman Puroshatamdas Mandhana, along with others.
They were accused of abusing their official positions by sanctioning loans to ineligible borrowers against illegal or non-existent collateral, and in return, collecting commissions from the beneficiaries. These funds were allegedly used to acquire properties in their names and in the names of their family members.
The probe revealed that during his tenure as MD, Umesh Chand Asawa approved loans to M/s Biomax Fuels Ltd. and its group companies by accepting third-party collateral that was already under litigation. In exchange, he allegedly collected commissions of 2–4 percent of the loan amount.
Investigators found that he received a total of Rs 1.1 crore in cash from the MD of Biomax Fuels Ltd. as quid pro quo for sanctioning otherwise ineligible loans. This amount was identified as proceeds of crime.
According to the ED, the illicit money was routed into real estate investments. The attached properties were purchased in the name of Asawa’s son, Rohit, with the sale deeds showing a consideration of Rs 26.7 lakh, while their market value exceeded Rs 1.5 crore.
Officials said the difference was covered through concealed cash payments, enabling Asawa to mix illicit funds with legitimate banking transactions and obscure the money trail.
The ED has concluded that the attached properties represent proceeds of crime generated through abuse of official position at the cooperative bank. Further investigation into the money laundering network and other possible beneficiaries remains underway.
