Former New India bank CEO held over ₹122-crore fraud

He was aware of Hitesh Mehta, the main accused, removing cash from the vault and likely received kickbacks, but was evasive during questioning prior to his arrest, said police

MUMBAI: The Economic Offences Wing (EOW) of Mumbai Police has arrested former chief executive officer (CEO) of New India Cooperative Bank, Abhimanyu Bhoan, in connection with the alleged siphoning of ₹122 crore from the bank’s safes between 2020 and 2024. Bhoan was aware of Hitesh Mehta, former general manager (accounts) of the bank and the main accused in the case, removing cash from the bank’s Prabhadevi and Goregaon branches and likely received kickbacks, but was evasive during questioning prior to his arrest, said police.

Abhimanyu Bhoan till he was eventually removed as CEO on February 6, barely a week before the fraud came to light, said sources

“We have information that he had complete knowledge of the fraud, but he is not telling us anything,” said a police officer familiar with the probe.

Bhoan is the third accused to be arrested in the case. Mehta, who reportedly confessed to siphoning cash, was arrested on Saturday, while developer Dharmesh Paun, who allegedly received ₹70 crore from the loot, was arrested on Sunday. All three accused have been remanded in police custody till February 28.

The probe till now has revealed that that the cash retention limit at the bank’s Prabhadevi headquarters was raised from ₹10 crore to ₹20 crore in 2016. As CEO and general manager of the bank, Bhoan and Mehta respectively were certainly aware of the limit, said the officer. “Yet, the limit was breached. In March 2019, the safes in Prabhadevi had ₹33 crore in cash, and in March 2020, ₹99 crore,” he noted.

Chartered accountant Abhijit Deshmukh, who gave the bank A grade after conducting an audit has already been questioned regarding the discrepancy in cash retention limit and he has sought time to study the old accounts books.

“We will soon question him again soon,” said the officer.

Bhoan, 45, a Khar resident, joined the bank as vice president, IT solutions in 2009 and was promoted as CEO in 2019. In 2024, the bank wrote to the Reserve Bank of India (RBI), seeking an extension for him, which was turned down. He continued in office regardless and the bank sent another request to the RBI, till he was eventually removed as CEO on February 6, barely a week before the fraud came to light, said sources.

“We want to check the roles of both Mehta and Bhoan during the time of audit in which they the bank was given A grade,” said the officer.

Another accused, solar panel dealer Unnanathan Arunachalam alias Arun Bhai, who allegedly received ₹50 crore of the loot, is absconding.