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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.