The Mumbai zonal office of the directorate of enforcement (ED) has provisionally attached assets worth about ₹16.95 crore in connection with a ₹122 crore embezzlement case linked to New India Cooperative Bank Ltd (NICBL), intensifying its crackdown on financial fraud.
The attachment includes 33 movable and immovable properties such as fixed deposits, bank balances, residential flats, commercial offices and agricultural land linked to the Bank's former chairman Hiren Bhanu and his family members under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation was initiated based on a first information report (FIR) registered by the economic offences wing (EOW) of Mumbai police, which alleged embezzlement of Bank funds amounting to around ₹122 crore.
According to ED, its probe revealed a systematic siphoning of funds from the Bank through manipulation of accounting systems and falsification of records.
A key role in the fraud was allegedly played by Hitesh Pravinchandra Mehta, the former general manager and head of accounts at NICBL, who is said to have created false entries showing inter-branch cash transfers.
Investigators say Mr Mehta admitted to withdrawing funds over a prolonged period.
ED alleged that the fraudulent activities were carried out at the behest of Mr Bhanu, who served as chairman and vice-chairman of the Bank and exercised control over its operations both directly and indirectly through associates and family members.
His wife, Gauri Hiren Bhanu, who also held key positions including acting chairman and vice-chairman, has been identified as a beneficiary of the alleged misappropriation.
Together, the couple is said to have received proceeds of crime amounting to at least ₹26 crore.
ED probe further uncovered that Mr Bhanu allegedly colluded with certain borrowers of the Bank to route funds abroad.
According to ED, he acquired overseas business entities without paying any consideration and subsequently channelled funds into accounts of these foreign companies through Indian borrowers who had been sanctioned substantial loans by the Bank.
The EOW has already filed charge-sheets in the case, while non-bailable warrants and proclamation proceedings have been issued against Mr Bhanu.
Investigators say the accused are currently outside India and have not cooperated with the probe.
ED says further investigation is underway to trace additional funds diverted from the Bank and identify other individuals or entities involved in the fraud, which has impacted both the institution and its depositors.
New India Cooperative Bank has been under regulatory scrutiny since February 2025, following a ₹122-crore embezzlement scandal involving senior management.
The approval was granted by RBI under sub-section (4) of Section 44A, read with Section 56 of the Banking Regulation Act, 1949. With this move, all existing branches of New India Cooperative Bank will be integrated into Saraswat Cooperative Bank and continue operations under the latter’s name from the effective date.
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