SC lets police probe key officials of Mahesh Bank

Sets aside HC stay on probe into forgery and illegal bank loans

The Supreme Court has allowed the Banjara Hills police to continue its investigation in the cases filed against AP Mahesh Cooperative Bank chairman Ramesh Kumar Bung, managing director Umesh Chand and vice-chairman Purushottam Das.

Through its order, the Supreme Court stayed the operation of an interim direction issued by the Telangana High Court on April 27 to suspend the probe against the key officials of Mahesh Bank.

Allegations against Ramesh Bung, Umesh Chand and Purushottam Das relate to the forging of documents; illegal disbursement of loans worth more than `300 crores; and siphoning of `18.30 crores from the bank.

In spite of several complaints lodged against the key officials of Mahesh Bank and a direction from the state government, police did not register an FIR against the trio.

Later, the AP Mahesh Bank Shareholders Association filed a complaint under Section 200 of the Criminal Procedure Code (CrPC) before a magistrate court, seeking its direction to the police.

The magistrate court referred the petition to the police under Section 156(3) of the Cr.PC, forcing the Banjara Hills police to register an FIR. However, the accused had got a stay from the Telangana High Court.

Though the AP Mahesh Bank Shareholders Association had on February 7 sought a High Court’s direction to the Reserve Bank of India for conducting a forensic audit into the bank’s transactions and to suspend the incumbent Board of Directors, the court refused to intervene.

The tussle between the incumbent management of the bank and the AP Mahesh Bank Shareholders Association came the fore during the elections conducted to elect the bank management.

Allegations against key Mahesh Bank officials relate to the forging of documents; illegal disbursement of loans worth more than `300 crore and the siphoning of `18.3 crore.