ED Files Charges Against Former GM and Seven Others in ₹122 Crore NICBL Bank Fraud Case
The Enforcement Directorate has filed a chargesheet against eight individuals, including a former GM, in a major bank fraud case.
Mumbai, October 14 (Daily Kiran) : The Enforcement Directorate (ED) has filed a chargesheet against Hitesh Praveenchandra Mehta, the former General Manager of New India Cooperative Bank Limited (NICBL), along with seven others, in connection with an alleged bank fraud amounting to ₹122 crore.
In an official statement, the ED revealed that the chargesheet was submitted to a Special PMLA Court under the Prevention of Money Laundering Act (PMLA). The court has subsequently ordered the issuance of notices to the accused.
The investigation into this money laundering case began after the Economic Offences Wing (EOW) of the Mumbai Police registered an FIR regarding the embezzlement of approximately ₹122 crore from the bank.
According to the ED, Mehta played a crucial role in the fraudulent activities by manipulating the accounting system and creating false records of cash transfers between bank branches to siphon off funds. The investigation has also indicated that these actions were influenced by another accused, who previously served as the bank’s chairman and vice-chairman, controlling the bank’s operations directly or through associates and family members for several years.
The ED alleges that the proceeds from the crime were transferred to various individuals and entities, including the main accused. During this period, it is claimed that former and acting chairmen of the bank received between ₹26 crore and ₹30 crore.
Further inquiries revealed that Hiren Bhanu allegedly collaborated with certain NICBL borrowers to acquire a business entity abroad without any payment. Funds were subsequently transferred to accounts associated with these foreign companies, which were linked to Indian borrowers who had taken out significant loans from the bank.
Previously, the ED had temporarily seized assets worth around ₹16.95 crore, including fixed deposits, bank balances, flats, commercial properties, and agricultural land. This seizure was later confirmed by the PMLA Adjudicating Authority.
The EOW has also filed a chargesheet in this case. A non-bailable warrant and proceedings for a proclamation have been issued against Bhanu, who is reportedly currently outside India and has not been cooperating with the investigation. The ED continues to pursue leads to trace the funds allegedly transferred from the bank to various individuals and entities.
