EOW summons CA who gave ‘A’ grade to New India Cooperative Bank

The police have also recorded the statement of the bank’s chief executive officer from 2019 to 2022, when the alleged fraud occurred

MUMBAI: The Mumbai police’s Economic Offences Wing (EOW) on Thursday summoned for questioning the chartered accountant (CA) who audited the accounts of the fraud-hit New India Cooperative Bank and gave it an ‘A’ grade. The police have also recorded the statement of the bank’s chief executive officer from 2019 to 2022, when the alleged fraud occurred, officials said.

Thane, India - February 14, 2025: Panic spreads among account holders at New India Co-op Bank Thane Vasant Vihar branch after RBI restrictions, Account holders are seen crowding outside Thane branch at vasant vihaar in thane to remove valuables from their lockers ,in Thane,in Mumbai, India, on, Friday, February -14, 2024. ( Praful Gangurde /HT Photo )

“We have summoned the chartered accountant, Abhijit Deshmukh of Sanjay Rane and Associates, for questioning on Thursday,” said a police officer. “He has carried out the bank’s audits from 2019 to 2021.”

The summons were issued after Hitesh Mehta, the main accused, claimed he had started siphoning off cash from the bank’s vaults since 2019. Mehta allegedly misappropriated around ₹122 crore from vaults in the bank’s Prabhadevi head office and Goregaon branch.

According to the police, Deshmukh was even appointed recently by the Reserve Bank of India (RBI) to carry out an inquiry into the misappropriation of funds by Mehta. “We want to ask Deshmukh on what basis he gave the bank an ‘A’ grade, and whether he checked the cash register and the bank’s vaults,” said the police officer. The EOW has also questioned Abhimanyu Bhuwan, who worked as the bank’s CEO from 2019 to 2022.

Meanwhile, the investigation has revealed that the two arrested accused, Mehta and real estate developer Dharmesh Paun, had been in contact since 2016, when the latter sold a house to Mehta. “Paun was also trying to get a loan for a slum rehabilitation project in Charkop but could not get it, so it seems Mehta gave him the money,” said an EOW officer.

Mehta was booked two days after the RBI imposed restrictions on the New India Cooperative Bank on February 13 due to alleged financial irregularities. EOW officials said the bank has been under the RBI’s surveillance since May 2021 due to several illegal practices in its operations. This was one of the reasons the RBI team carried out a sudden inspection at the bank’s headquarters on February 12, when the scam was unearthed, officials added.

The police are likely to apply for permission to conduct a polygraph test, also known as a lie-detector test, on Mehta as he has allegedly been evasive during interrogation about how and where he spent the money. The police have also issued a lookout circular against Malad resident Unnathan Arunachalam, also known as Arun Bhai, after Mehta claimed he gave ₹40 crore from the stolen money to him. Arun Bhai is absconding and has switched off his phone, officials said.