Corruption
EOW Summons Chartered Accountant Over Rs 122 Crore New India Co-op Bank Fraud
Mumbai: The Economic Offences Wing (EOW) of the Mumbai Police has summoned chartered accountant Abhijit Deshmukh of Sanjay Rane and Associates for questioning in connection with the massive Rs 122 crore fraud at New India Cooperative Bank. Deshmukh, who audited the bank’s accounts between 2019 and 2021, awarded it an ‘A’ grade despite financial irregularities.
Authorities are investigating how the alleged fraud, orchestrated by prime accused Hitesh Mehta, went undetected for years. Mehta, who was booked just days after the Reserve Bank of India (RBI) imposed restrictions on the bank on February 13, is accused of siphoning off cash from the bank’s Prabhadevi headquarters and Goregaon branch. The RBI had been monitoring the bank since May 2021 due to multiple financial discrepancies, leading to a surprise inspection which exposed the scam.
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Deshmukh, who was recently appointed by the RBI to probe the misappropriation, is expected to clarify the basis on which he assigned the high rating to the bank. Investigators are keen to know whether he verified crucial financial records, including cash registers and vaults.
Additionally, the EOW has questioned former CEO Abhimanyu Bhuwan, who held the position from 2019 to 2022, during the period of the alleged fraud. Meanwhile, investigations have uncovered links between Mehta and real estate developer Dharmesh Paun, who had financial dealings dating back to 2016. Paun was reportedly seeking a loan for a slum rehabilitation project in Charkop, which Mehta may have financed using the stolen funds.
Authorities have also issued a lookout notice for Malad resident Unnathan Arunachalam, alias Arun Bhai, after Mehta revealed he handed over Rs 40 crore of the embezzled money to him. Arunachalam is currently absconding, and his phone remains switched off.
In an effort to extract more details, investigators are considering a polygraph test on Mehta, as he has been evasive about the whereabouts of the stolen funds. Meanwhile, panic has gripped account holders, with customers rushing to the Thane Vasant Vihar branch to retrieve their valuables following RBI’s restrictions.
The probe continues, as authorities work to unravel the full extent of the financial scandal and track down missing funds.