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Time of India
28-04-2025
- Business
- Time of India
Depositors of New India Co-operative Bank stage protest over delay in fund access
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Depositors of scam-hit New India Co-operative Bank staged a protest in Maharashtra's Thane city on Monday, demanding urgent action on the revival or merger of the institution. Protestors under the banner of the NICB Depositors' Foundation marched to the bank's Majiwada branch, carrying placards listing their Foundation has been demanding urgent measures to restore depositor confidence and alleviate the financial strain faced by thousands of account holders since RBI imposed restrictions on February Police has so far arrested eight persons in the Rs 122 crore New India Co-operative Bank embezzlement case.A delegation met the branch manager and submitted a detailed memorandum outlining their apprehensions regarding the bank's memorandum stressed that despite earlier meetings with RBI-appointed advisors and senior officials, there is "considerable ambiguity" about the bank's voiced concerns about the safety of their deposits, particularly amounts exceeding Rs 5 lakh insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) and demanded specific timelines for either the bank's revival or its merger with a stable financial the memorandum, depositors have demanded an increase in the withdrawal cap from Rs 25,000 to Rs 1.5 lakh, full repayment of fixed deposits beyond the insured limit, updates on forensic and special audits, an assessment on the impact of non-performing assets (NPAs), and early recovery of funds from attached properties linked to warned of intensifying their agitation if authorities continued to delay action, urging the bank management to immediately forward their concerns to the NICB Administrator and seek the RBI's intervention for urgent memorandum also appealed that the bank must request the RBI to announce the removal of restrictions and roll out a revival or merger plan before the DICGC disburses insurance money on May 14.
Hindustan Times
28-04-2025
- Business
- Hindustan Times
Depositors of New India Co-operative Bank stage protest over delay in fund access
Thane, Depositors of scam-hit New India Co-operative Bank staged a protest in Maharashtra's Thane city on Monday, demanding urgent action on the revival or merger of the institution. Protestors under the banner of the NICB Depositors' Foundation marched to the bank's Majiwada branch, carrying placards listing their demands. The Foundation has been demanding urgent measures to restore depositor confidence and alleviate the financial strain faced by thousands of account holders since RBI imposed restrictions on February 13. Mumbai Police has so far arrested eight persons in the ₹122 crore New India Co-operative Bank embezzlement case. A delegation met the branch manager and submitted a detailed memorandum outlining their apprehensions regarding the bank's future. The memorandum stressed that despite earlier meetings with RBI-appointed advisors and senior officials, there is "considerable ambiguity" about the bank's prospects. Depositors voiced concerns about the safety of their deposits, particularly amounts exceeding ₹5 lakh insured under the Deposit Insurance and Credit Guarantee Corporation and demanded specific timelines for either the bank's revival or its merger with a stable financial institution. In the memorandum, depositors have demanded an increase in the withdrawal cap from ₹25,000 to ₹1.5 lakh, full repayment of fixed deposits beyond the insured limit, updates on forensic and special audits, an assessment on the impact of non-performing assets , and early recovery of funds from attached properties linked to fraudsters. Depositors warned of intensifying their agitation if authorities continued to delay action, urging the bank management to immediately forward their concerns to the NICB Administrator and seek the RBI's intervention for urgent relief. The memorandum also appealed that the bank must request the RBI to announce the removal of restrictions and roll out a revival or merger plan before the DICGC disburses insurance money on May 14.
Hindustan Times
26-04-2025
- Hindustan Times
New India Co-op Bank case: ED launches money laundering probe, seizes valuables worth ₹1 crore
MUMBAI: The Enforcement Directorate (ED) on Thursday carried out searches at seven locations across Mumbai and Gujarat in connection with an alleged ₹122 crore bank fraud involving the New India Co-operative Bank (NICB). The searches, conducted under the Prevention of Money Laundering Act (PMLA), led to the seizure of valuables worth ₹1 crore and several documents, including property records. The search operation centred on Hiren Bhanu, former chairman of New India Co-operative Bank, who allegedly facilitated the diversion of bank loans that turned into non-performing assets (NPAs). According to ED officials, these funds, estimated to exceed ₹45 crore, were transferred to overseas entities linked to Bhanu. The alleged transactions were traced during ED's search operation. The embezzlement at the bank came to light during a Reserve Bank of India (RBI) risk assessment, which first flagged the same. Mumbai police's Economic Offences Wing (EOW) is also probing the matter under various sections of the Bharatiya Nyaya Sanhita. ED officials stated that the current phase of the investigation focuses on tracing the flow of funds and identifying beneficiaries involved in the misappropriation, which has not only affected NICB but also impacted its depositors. Reacting to ED's action, Bhanu's lawyer Sajjal Yadav told HT on Friday, 'My clients are not aware of the ED action. The funds received by Bhanu in his overseas companies were in the routine course of his business and have no nexus with banking operations or theft of ₹122 crore from the bank. Hiten Mehta, in connivance with auditors, has physically stolen cash from the bank that was not even noticed by the RBI nominated members on the board of the bank over the last few years. The Bhanus have addressed multiple letters to the EOW to examine them on video - conferencing. No summons has been received from ED.' In a separate operation on Friday, ED conducted searches in Malegaon, Nashik, as part of a parallel investigation into a suspected large-scale scam involving delayed birth and death certificates. The probe is based on multiple FIRs registered across districts including Akola, Amravati, Chhatrapati Sambhaji Nagar, Latur, Nashik (Rural), and Parbhani. The scam involves the use of forged documents — such as tampered school leaving certificates, Aadhaar cards, and ration cards — to fraudulently obtain delayed registration of births or deaths. In Malegaon alone, two cases revealed that 3,127 such certificates were issued between August 2023 and December 2024, suggesting a widespread racket involving agents, document forgers, and beneficiaries. Based on intelligence inputs, ED examined bank accounts of suspects and agents linked to the alleged racket. The analysis indicated frequent UPI transfers and cash deposits believed to be bribe money. One key agent's account was reportedly used to collect bribes on behalf of a former Naib Tehsildar of Malegaon Tehsil. The bribe amounts were quickly dispersed to multiple individuals suspected to be part of the network. The police cases, mostly initiated on complaints by tehsildars, describe how applicants submitted fake documents and manipulated Aadhaar details to obtain fraudulent birth certificates. In some instances, individuals applied for multiple birth records with differing information, pointing to a systematic attempt to bypass verification protocols. Both investigations remain ongoing.
Indian Express
25-04-2025
- Business
- Indian Express
Rs 122 crore New India co-op bank scam: Rs 45 crore diverted to bank's then chairman's overseas entities, says ED
The Enforcement Directorate (ED), which is carrying out a money laundering probe into the Rs 122-crore New India Co-operative Bank embezzlement case, said on Friday Rs 45 crore was diverted to the bank's former chairman Hiren Bhanu's overseas entities. The ED on Thursday conducted searches at seven premises in Mumbai and Gujarat as part of its probe. During the searches, incriminating documents, including property-related documents and valuables of around Rs 1 crore, were seized, the agency said. The documents revealed diversion of bank funds from those loan accounts which later turned NPA into Bhanu's overseas entities, ED sources said. 'Details and documents of such transactions amounting to more than Rs 45 crore sent to foreign entities related to Hiren Bhanu have been ascertained, which are being examined,' the ED stated in a statement on Friday. The ED began probing the case after embezzled cash amounting to Rs 122 crore of the New India Co-operative Bank was unearthed by the RBI. Mumbai Police EOW is already investigating fraud charges and arrested eight persons in the case, including alleged mastermind, the bank's former GM Hitesh Mehta. Hiren Bhanu and his wife Gauri, who is the bank's vice-chairperson, are also wanted in the case and have been declared proclaimed offenders by a Mumbai court. EOW also did a brain-mapping test of Mehta. 'The results of the test indicate his role and the role of other accused such as Hiren Bhanu, bank's former CEO Abhimanyu Bhoan, Mehta's friends Arunachalam Ullahanathan Maruthuvar, Dharmesh Paun and others in the scam,' a senior EOW officer said. The results of the brain-mapping test, however, cannot be used as direct evidence against Mehta and the other accused. It can be only used to further the investigation. 'My clients are not aware of the ED action. The funds received by Bhanu in his overseas companies were in his routine course of business and have no nexus with banking operations or theft of Rs 122 crore from the bank. Hiten Mehta in connivance with auditors has physically stolen cash from bank that was not even noticed by RBI-nominated members on the board of the bank since last few years. Bhanus have addressed multiple letters to EOW to examine them on VC (video conferencing), to which EOW has not responded. No summons have been received from ED,' lawyer for Hiren Bhanu and his wife Gauri stated. Mehta allegedly embezzled money from the bank's safe from 2019 to 2025 and handed it over to Paun and Maruthuvar. Police said after the fraud was uncovered during an RBI inspection at the bank's Prabhadevi and Goregaon branches on February 12, Mehta confessed to the crime and revealed the roles of the other accused. The other accused arrested are Bhoan, Maruthuvar's son Manohar and Kapil Dedhia. EOW has already initiated the process of attaching 21 immovable properties worth approximately Rs 168 crore belonging to five key accused in the case. EOW is also conducting a preliminary enquiry (PE) into allegations of NPAs worth over ₹400 crore. The complaint claims the bank continued disbursing loans to defaulting accounts despite repeated non-payments.
Reuters
24-02-2025
- Business
- Reuters
India's RBI allows New India Co-op Bank depositors to withdraw up to 25,000 rupees
Feb 24 (Reuters) - India's central bank said on Monday it would allow depositors of troubled New India Co-operative Bank to withdraw up to 25,000 rupees (about $290) from their accounts. The RBI on Feb. 13 barred the lender from issuing new loans, suspended deposit withdrawals for six months and appointed an administrator, citing supervisory concerns and the lender's liquidity position. New India Co-operative Bank had outstanding deposits of 24.36 billion rupees as of March 31, 2024, and advances of 11.75 billion rupees. The Reserve Bank of India (RBI), which superseded the small lender's board earlier this month, said on Monday the decision to allow withdrawals would help more than half of the account holders. Reuters reported last week that the RBI was working on a plan to allow depositors to make special withdrawals for personal and medical emergencies. ($1 = 86.6880 Indian rupees) Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
