ED attaches ex-chairperson’s assets worth ₹17 cr in ₹122-Cr New India bank fraud

The ED has attached assets worth ₹16.95 crore linked to former NICBL chairman Hiren Bhanu in a ₹122-crore money-laundering case.

Mumbai: The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth ₹16.95 crore in connection with its money-laundering probe into the alleged ₹122-crore embezzlement at New India Co-operative Bank Ltd (NICBL).

ED attaches ex-chairperson’s assets worth ₹17 cr in ₹122-Cr New India bank fraud

The attached assets—including fixed deposits, bank balances, residential flats, a commercial office and agricultural land—are linked to the bank’s former chairman Hiren Bhanu and his family members. The action has been taken under provisions of the Prevention of Money Laundering Act (PMLA), officials said on Wednesday.

The ED initiated its probe last year based on an FIR registered by the Mumbai Police’s Economic Offences Wing (EOW), after the alleged fraud came to light in February following an audit by the Reserve Bank of India at the bank’s Mumbai head office.

In the case, the EOW had earlier arrested the prime accused, Hitesh Mehta, former general manager and head of accounts at the bank, for allegedly siphoning off around ₹122 crore, largely during the Covid-19 period.

According to the ED, Mehta manipulated the bank’s accounting systems and created fictitious entries of inter-branch cash transfers to divert funds over an extended period. Investigators claim he later admitted to repeatedly withdrawing cash from the bank.

The agency further alleged that the diversion of funds was carried out at the behest of Bhanu, who exercised control over the bank’s operations directly and through associates and family members. Bhanu’s wife, Gauri — who also served as acting chairman— has been identified as a beneficiary in the case.

Officials said the couple allegedly received proceeds of crime worth about ₹26 crore.

The probe has also indicated that Bhanu, in connivance with certain borrowers, acquired an overseas business entity without paying consideration, and later routed funds to foreign accounts through Indian borrowers who had availed substantial loans from the bank.

The EOW has filed charge sheets in the case, while a non-bailable warrant and proclamation proceedings have been issued against Bhanu. Officials said the accused are currently believed to be abroad and have not cooperated with the investigation.

Further investigations are underway to trace the diverted funds and identify other beneficiaries. The ED had earlier conducted searches in April last year and seized valuables worth ₹1 crore.