Mumbai: Fresh details have emerged in the New India Cooperative Bank scam, with police uncovering that former General Manager Hitesh Mehta allegedly directed bank employees to withdraw ₹50 lakh in multiple transactions and hand over the cash to individuals he designated.
Mehta, currently in custody along with real estate developer Dharmesh Paun since February 16, is accused of siphoning ₹122 crore from the bank. The fraud came to light following an investigation by the Reserve Bank of India (RBI).
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Bank Employees Turn Witnesses
According to police officials, Mehta had direct access to the bank’s vaults. Two bank employees, whose statements have been recorded, admitted to disbursing cash at Mehta’s instructions. “These employees, now witnesses in the case, confirmed handing out ₹50 lakh on multiple occasions to individuals sent by Mehta,” said an investigating officer.
Authorities are also examining a letter reportedly sent by a former bank employee to the RBI, highlighting concerns about the bank’s financial condition. Investigators are verifying whether regulatory officials were aware of the irregularities as non-performing assets (NPA) continued to rise due to unauthorized fund distributions.
Audit Lapses Under Scrutiny
The investigation has also revealed discrepancies in the audit process. “Given the bank’s deteriorating financial position over the past two years, we are probing why auditors failed to detect fund misappropriation. Statements are being recorded from those involved in the audit,” the officer added.
While initial estimates pegged the missing funds at ₹138 crore, the RBI’s findings identified a shortfall of ₹122 crore across two vaults. The Economic Offences Wing (EOW) is investigating whether the embezzlement occurred in a single instance or over time.
Key Witnesses Questioned
Abhijit Deshmukh, a partner at a chartered accountancy firm that audited the bank, has provided a statement to the EOW at the South Mumbai Commissionerate. Additionally, former Chief Executive Officer (CEO) Abhimanyu Bhoan’s statement was recorded on Wednesday, and he has been summoned again for further questioning.
Meanwhile, authorities are tracking Unnathan Arunachalam, alias Arun Bhai, who allegedly received ₹50 crore from Mehta and remains at large. A lookout notice has been issued for his arrest.