New India Co-operative Bank case: Court rejects former CEO’s bail plea

The EOW further argued that Bhoan and Mehta were fully aware of the cash retention limit at the bank, which had been extended from ₹10 crore to ₹20 crore

MUMBAI: A metropolitan magistrate court has rejected the bail application of Abhimanyu Bhoan, former CEO of the New India Cooperative Bank, who is accused of embezzling ₹122 crore from the bank’s cash reserves.

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 )

Additional chief judicial magistrate Rekha Thakur, in her April 28 order, noted that Bhoan was fully aware of the bank’s cash position and allegedly committed the offence in collusion with Hiren Bhanu—son of the bank’s co-founder Rajni Bhanu—and his wife Gauri Bhanu. Both have reportedly fled India with their children and are believed to be in Abu Dhabi, United Arab Emirates.

The court observed that Bhoan had allegedly switched to a new mobile phone and destroyed his previous one, apparently to eliminate evidence linking him and the absconding accused. It also took note of findings by the Economic Offences Wing (EOW), which launched its investigation following a Reserve Bank of India (RBI) surprise audit on February 12. The audit revealed a shortfall of ₹122 crore in the bank’s cash reserves.

Hitesh Mehta, the bank’s former general manager, was the first to be arrested in the case. Bhoan is the third individual taken into custody.

During the bail hearing, Bhoan’s defence argued that he was not involved in the bank’s daily operations or cash transactions. His counsel claimed there had been no objections raised against him by auditors since December 2019 and asserted that Bhoan was being falsely implicated based on Mehta’s statement, which they argued lacked legal weight.

However, the prosecution maintained that Mehta had handed over ₹1 crore to Bhoan. They also told the court that after the RBI conducted raids at the bank’s Prabhadevi and Goregaon branches, Bhoan accessed his HDFC Bank locker and removed property documents allegedly exceeding his known income. The EOW further argued that Bhoan and Mehta were fully aware of the cash retention limit at the bank, which had been extended from ₹10 crore to ₹20 crore.

Investigators also claimed to have found passports and travel documents of Hiren and Gauri Bhanu on Bhoan’s laptop, further linking him to the absconding duo.

Bhoan’s counsel countered that his arrest was unlawful and that brain-mapping and polygraph tests were not conducted in accordance with Supreme Court guidelines.

Dismissing the bail plea, the magistrate stated that the investigation was ongoing and that releasing Bhoan at this stage posed a risk of him fleeing or tampering with evidence.