Two linked to New India Co-operative Bank scam ‘have left country’

Customers at New India Co-operative Bank’s Kandivli branch on February 14. Pic/Nimesh Dave

In a major development in the New India Co-operative Bank scam, the police's Economic Offences Wing (EOW) has declared former vice-chairman Hiren Bhanu and his wife, Gauri Bhanu - the current vice-chairman and acting chairman of the bank - as wanted accused. Their names surfaced after investigations revealed they allegedly received a significant portion of the Rs 122 crore siphoned from the bank's cash vaults.

An EOW officer confirmed, "The former vice chairman and his wife, who is the acting chairman and current vice chairman, have been declared wanted accused in the case." More details have emerged, revealing that the couple fled the country even before the Mumbai police were informed and the FIR was registered. Sources indicate that Hiren Bhanu left in the last week of January, while his wife followed in the second week of February. Meanwhile, the Reserve Bank of India (RBI) conducted an inspection on February 12 and discovered that Rs 122 crore was missing from the cash vaults of the bank's Prabhadevi and Goregaon branches. The bank lodged a complaint with the police on February 13, and the FIR was registered on the intervening night of February 14 and 15. The case was later transferred to the EOW for further investigation.

Customers rush to the New India Co-op Bank in Andheri after strict withdrawal curbs were announced. Pics/Nimesh Dave

The decision to name the couple as accused came after the extensive interrogation of former general manager Hitesh Mehta. Initially, Mehta told the EOW that he had given Rs 70 crore to SRA developer Dharmesh Paun and Rs 40 crore to solar energy businessman Unnatham Arunachalam, alias Anna, but did not disclose the whereabouts of the remaining Rs 12 crore.

However, during questioning, Paun confessed to receiving only Rs 12 crore. Mehta has now allegedly revealed to the agency that he handed over Rs 24 crore to Hiren Bhanu and a portion of the money to his wife, Gauri Bhanu. The EOW also conducted searches at the couple's residence, but they were missing. As a result, they have been officially declared wanted accused, and an entry has been made in the case diary. "Following the investigation so far, it appears that there may be collusion between the accused and the bank's vice chairman," the officer added.

Officials also suspect auditors are involved in the scam and question them regularly. "We believe the auditors may have played a significant role. So far, we are not satisfied with how the scam or the missing cash went unnoticed for years. We are reviewing all standard operating procedures (SOPs) followed by auditors and the type of information shared with them by the bank before audits. A forensic audit will also be conducted to determine if auditors had any role in the missing funds," the officer said. So far, six different audit firms have been called in for questioning.

On Thursday, the EOW also arrested Manohar Arunachalam, son of absconding accused Unnathan Arunachalam. Investigators revealed that Manohar assisted his father in fleeing and also received R15 crore out of the Rs 40 crore his father allegedly obtained from Mehta.