ED Files Charges Against Eight in ₹122 Crore New India Cooperative Bank Scam

Mumbai, October 14 (Udaipur Kiran) : The Enforcement Directorate (ED) has taken significant action in connection with a ₹122 crore embezzlement case involving the New India Cooperative Bank Limited (NICBL). The agency filed a prosecution complaint against former General Manager Hitesh Mehta and seven others in a special court in Mumbai. The court has issued pre-cognition notices to the accused.

This investigation was initiated based on an FIR filed by the Economic Offences Wing (EOW) of the Mumbai Police, which pertained to the misappropriation of approximately ₹122 crore. The inquiry revealed that Hitesh Mehta, along with the bank's accounts head, played a crucial role in siphoning off funds by manipulating the accounting system and creating false records of cash transfers between bank branches. During questioning, Mehta admitted to withdrawing funds over an extended period.

Further findings indicated that these activities were conducted at the behest of the bank's former chairman and vice-chairman, who maintained direct and indirect control over the bank's operations through associates and family members. The investigation also uncovered that illicit earnings were transferred to several individuals and entities, including the main accused, with the former chairman and vice-chairman receiving amounts ranging from ₹26 to ₹30 crore.

Additionally, a significant revelation emerged involving accused Hiren Bhanu, who allegedly colluded with some bank borrowers to acquire a company and business entity abroad without paying any sales price. Subsequently, funds were funneled into these foreign companies' accounts through Indian borrowers who had been granted substantial loans by NICBL. Previously, the ED had temporarily seized assets worth ₹16.95 crore associated with the accused and suspects, including fixed deposits, bank balances, flats, commercial offices, and agricultural land.

This seizure has been confirmed by the Adjudicating Authority under the Prevention of Money Laundering Act (PMLA). The EOW has filed a chargesheet in this case, and proceedings for a non-bailable warrant and proclamation have been initiated against Hiren Bhanu, who is reportedly outside India and not cooperating with the investigation.