Archive · 5 Dec 2025
Corruption Allegations Heat Up Mahesh Bank Polls
There is a big election coming up for the board of Andhra Pradesh Mahesh Cooperative Urban Bank Ltd on December 7.
The current board, led by Ramesh Kumar Bung, is facing serious allegations of corruption and bad management.
The Reserve Bank of India (RBI) found problems with how the bank built its new head office.
The cost of the building went up a lot, from ₹32.28 crore to ₹44.76 crore, and there were issues with how contracts were given out.
Some contracts went to relatives of board members, which caused legal problems.
The current leaders have been in charge for a very long time, and the RBI says this is not good for the bank.
The other group running for the board is using these problems to show that the current leaders are not doing a good job.
Corruption allegations and governance lapses in the construction of Andhra Pradesh Mahesh Cooperative Urban Bank Ltd's head office have become a major issue in the upcoming board elections.
The RBI inspection report flagged serious issues, including a steep escalation in project costs from ₹32.28 crore to ₹44.76 crore.
The report highlighted that work orders were issued to distant relatives of board directors, bypassing L1 bidders, resulting in legal disputes.
The incumbent board, led by Ramesh Kumar Bung, has faced criticism for long-standing concentration of power and failure to review director tenures as per regulations.
The opposing 'Founder panel' is using the RBI report to question the credibility and governance standards of the current board.
- Who
- Andhra Pradesh Mahesh Cooperative Urban Bank Ltd, RBI, Incumbent board led by Ramesh Kumar Bung, Rival 'Founder panel'
- What
- Corruption allegations and governance lapses in the construction of the bank's head office
- When
- Upcoming board elections on December 7, Construction completed in 2020
- Where
- Hyderabad, Andhra Pradesh
- Why
- RBI inspection report flagged serious governance lapses and irregularities in the construction project
- Bank
- Andhra Pradesh Mahesh Cooperative Urban Bank Ltd
- Election Date
- December 7
- Chairman
- Ramesh Kumar Bung
- Initial Project Cost
- ₹32.28 crore
- Final Project Cost
- ₹44.76 crore
- Chairman's Tenure
- Since 1994
- Senior Vice-Chairman's Tenure
- Since 1997
