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Business Standard
14-05-2025
- Business
- Business Standard
EOW files chargesheet in Rs 122 crore New India Co-operative Bank 'scam'
The Economic Offences Wing (EOW) of the Mumbai Police has filed a chargesheet in connection with the alleged ₹122-crore fraud involving New India Co-operative Bank. The alleged scam, which came to light after a Reserve Bank of India inspection, centres around large-scale embezzlement allegedly carried out over several years. Among those named in the over 12,600-page chargesheet are former bank chairman Hiten Bhanu and his wife Gauri Bhanu, who served as vice-chairperson. Both have been declared proclaimed offenders and are believed to have fled the country. Since they remain untraceable despite multiple efforts by the EOW, they have been chargesheeted under Section 335 of the Bharatiya Nagarik Suraksha Sanhita, which allows evidence to be recorded in the absence of the accused. The alleged mastermind, former general manager Hitesh Mehta, is among eight individuals arrested so far. These include ex-bank officials, private individuals, and real estate developer Dharmesh Paun. Several auditors who were responsible for reviewing the bank's financial records — Abhijeet Deshmukh of Sanjay Rane and Associates, Laxminarayan Nayak of Shinde Nayak and Associates, and Subhash Mogal of SI Mogal and Company — have also been named for failing to flag the irregularities during audits. Modus operandi Investigators allege that Mehta stole cash from the safes of the bank's Prabhadevi and Goregaon branches between 2019 and 2025, handing the money over to Paun and Arunachalam Ullahanathan Maruthuvar. The fraud reportedly remained undetected for years, even escaping the notice of RBI-appointed directors on the bank's board. Following Mehta's arrest, he underwent a brain-mapping test, which, while not admissible as direct evidence, has helped the EOW identify additional suspects. According to police, the results pointed to the involvement of other individuals, including former CEO Abhimanyu Bhoan and Maruthuvar's son Manohar. Legal defence and ongoing proceedings A lawyer representing the Bhanus claimed the couple had requested to be examined over video conferencing but received no response from authorities. He also stated that the funds found in Hiren Bhanu's overseas accounts were part of legitimate business activities, unrelated to the alleged embezzlement. Meanwhile, the EOW has attached assets worth approximately ₹167 crore belonging to the accused. These include 21 properties — flats, commercial premises, and a bungalow — located in Maharashtra, Gujarat, and Bihar, some of which are in the names of Hitesh Mehta and his family. Additional investigations The EOW is continuing its investigation and has named six other individuals as wanted in the case. Among them are Subhash Mogal, Ajay Rathod, Pawan Jaiswal, and Shaukat Jamdar from Mogal Company. A supplementary chargesheet is expected against them. Authorities are also conducting a preliminary inquiry into loans amounting to over ₹400 crore that were reportedly extended to defaulters despite ongoing non-payments, raising concerns about potential irregularities in loan disbursements. To date, statements from 45 witnesses have been recorded, with eight of them documented under Section 183 of the Indian Civil Security Act.
United News of India
04-05-2025
- Business
- United News of India
BOI signs MoU with Sa-Dhan to boost financing for small, micro and women-led enterprises
Kolkata, May 03 (UNI) Bank of India has signed a Memorandum of Understanding (MoU) with Sa-Dhan, an RBI-appointed self-regulatory for microfinance and impact finance institutions, to enhance financing access for small, micro and women-led enterprises. The two organisations will collaborate to achieve key National Financial Inclusion and Sustainable Development Goals (SDGs). The MoU is a non-commercial arrangement outlining key areas of collaboration, including enterprise finance for SHGs and non-SHG members, climate-resilient technologies and green financing, WASH (Water, Sanitation and Hygiene) financing, co-lending to MFIs, digital transformation and technology adoption, and, most importantly, financial literacy and awareness of government schemes. The MoU aims to enhance collaboration with microfinance institutions to provide affordable, flexible financing to underserved communities, particularly women entrepreneurs. Loan disbursement and monitoring will be enabled through digital platforms. Bank of India and Sa-Dhan will drive initiatives to raise awareness of government schemes, financial services, and social security programmes among rural entrepreneurs. Bank of India Executive Director P.R. Rajagopal said, 'BOI's partnership with Sa-Dhan will strengthen small, micro and women-led enterprises by enabling timely and seamless access to finance, and supporting key financial inclusion and sustainable development goals. It will benefit SHG and non-SHG members, promote climate-resilient technologies through green financing, and expand the scope of WASH and digital literacy initiatives.' Jiji Mammen, Executive Director and CEO, Sa-Dhan, said, 'Our collaboration with Bank of India marks a significant step toward equitable access to affordable finance for enterprises, including SHGs and non-SHGs, while achieving sustainable development goals such as climate financing. Coupled with digital adoption and financial literacy, we aim to expand enterprise financing to rural and semi-urban areas, empowering small businesses and women-led enterprises with flexible lending for inclusive development.' UNI SJC
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.
