The Enforcement Directorate has filed a prosecution complaint against eight individuals before a special court under the Prevention of Money Laundering Act in connection with an alleged ₹122 crore financial fraud at New India Co-operative Bank Limited. Former general manager Hitesh Mehta is among the primary accused named in the chargesheet. Investigators allege that internal bank funds were systematically siphoned off through falsified accounting entries and unauthorised transfers. Alongside the formal charges, the agency has attached or seized 33 movable and immovable assets valued at ₹16.95 crore, which it claims represent proceeds of crime.
Bogus Book Entries and Senior Executive Links
According to the central probe agency, Mehta allegedly altered branch accounting records to divert ₹122 crore out of the lender. Agency findings indicate that Mehta acted on instructions issued by the bank’s former chairman and vice-chairman. These two former top officials allegedly received between ₹26 crore and ₹30 crore from the diverted capital. The agency continues to review internal ledgers and account statements to corroborate the operational trail, while the allegations remain subject to judicial evaluation where the named individuals will contest the charges.
Overseas Company Acquisition and Loan Diversion
The probe has also turned its attention toward another key accused, Hiren Bhanu, who allegedly conspired with bank borrowers to facilitate the unlawful takeover of a foreign company. Investigators suspect that loan proceeds sanctioned by the co-operative lender were transferred into offshore bank accounts to finance the transaction. The agency is tracking the international flow of capital to establish the full trajectory of the siphoned money, scrutinising internal documentation, the sanctioning of commercial credit, and subsequent asset purchases made both domestically and abroad.
Fugitive Proceedings Initiated Amid Asset Recovery Drive
To recover the misappropriated capital, the agency attached or seized 33 properties comprising residential flats, commercial premises, agricultural parcels, and liquid bank deposits. The ₹16.95 crore valuation remains substantially lower than the total ₹122 crore loss, leaving investigators tasked with tracing the missing balance. Meanwhile, Bhanu has been reported absconding, prompting the Economic Offences Wing to initiate proceedings to declare him a fugitive. ED officials noted that several other accused individuals have also fled abroad, complicating ongoing efforts to secure cross-border fund recovery as court proceedings commence.
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