Enforcement Directorate Files Charges in ₹122 Crore New India Cooperative Bank Fraud Case
The Enforcement Directorate has filed charges against eight individuals, including a former bank manager, in a major ₹122 crore fraud case.
Mumbai, October 14 (Daily Kiran) : The Enforcement Directorate (ED) has taken significant action in the New India Cooperative Bank Limited (NICBL) fraud case involving ₹122 crore. The agency’s Mumbai zonal office filed a prosecution complaint against former General Manager Hitesh Mehta and seven others in a special PMLA court in Mumbai. The court has ordered the issuance of pre-cognizance notices to the accused.
This investigation was initiated based on a First Information Report (FIR) filed by the Economic Offences Wing (EOW) of the Mumbai police, which pertains to the misappropriation of approximately ₹122 crore in funds.
The inquiry revealed that Hitesh Praveenchandra Mehta, the former General Manager and head of accounts, played a crucial role in siphoning off bank funds. He manipulated the accounting system and created fake records of cash transfers between bank branches. During questioning, he admitted to withdrawing funds over an extended period.
Further findings indicated that these fraudulent activities were conducted under the direction of other accused individuals, including the former chairman and vice-chairman of the bank, who maintained direct and indirect control over its operations through associates and family members.
The investigation also uncovered that proceeds from the crime were transferred to various individuals and entities, including amounts ranging from ₹26 to ₹30 crore to the former and current chairmen and vice-chairmen of the bank.
Another significant revelation involved an accused named Hiren Bhanu, who allegedly colluded with some bank borrowers to acquire a company and business unit abroad without paying any sales price. He then funneled funds into these foreign accounts through Indian borrowers who had received substantial loans from NICBL.
Previously, the ED had provisionally seized assets worth approximately ₹16.95 crore linked to the accused and suspects under the PMLA, 2002. This included fixed deposits, bank balances, flats, commercial offices, and agricultural land, with the adjudicating authority confirming the seizures.
The EOW has filed a chargesheet in the case, and non-bailable warrants and proceedings for proclamation have been initiated against Hiren Bhanu, who is currently outside India and is not cooperating with the investigation.
