Corruption
Mumbai EOW Arrests Developer for Aiding Bank Official in Rs 122 Crore Fraud
The Economic Offences Wing (EOW) of Mumbai Police arrested a developer, Dharmesh Paun, for allegedly assisting Hitesh Mehta, former general manager and head of accounts at New India Cooperative Bank, in embezzling Rs 122 crore from the bank’s safe.
Bank Official Accused of Masterminding Fraud
On Saturday, police arrested Mehta, who had been employed at the bank since 1988, following a complaint by the bank’s CEO Devarshi Shishir Kumar Ghosh (48). Investigators allege Mehta misused his position between 2019 and January 2025 to steal cash from bank safes in Prabhadevi and Goregaon. The police claim he routed Rs 70 crore through Paun. Authorities recovered transaction records showing Mehta transferred Rs 1.75 crore to Paun between May and December 2024, and an additional Rs 50 lakh in January 2025.
Both were presented before a holiday court on Sunday, where police argued their active role in the crime was established. The court remanded them in police custody until February 21. Investigators are probing whether more individuals were involved in the fraud.
Fraud Uncovered During RBI Inspection
The scam was exposed on February 12, 2025, when the Reserve Bank of India (RBI) conducted a routine inspection at the bank’s Prabhadevi corporate office and Goregaon branch. When RBI officials counted the cash, they found Rs 112 crore missing from the Prabhadevi safe and another Rs 10 crore missing from Goregaon. While senior officials were questioned, Mehta allegedly confessed to taking the money and giving it to unidentified individuals. He later took RBI and bank officials to different locations, where Rs 50 lakh was recovered. RBI officials recorded Mehta’s confession and obtained a written statement from him. Following their instructions, bank officials lodged a police complaint, leading to Mehta’s arrest and subsequent investigation by the EOW.
Defense Raises Questions on Auditors’ Role
During the hearing, Paun’s defense lawyers questioned the role of the bank’s auditors, arguing that if funds were siphoned over several years, auditors should have flagged discrepancies earlier. They also claimed that Paun had disclosed the amounts he received and was undergoing medical treatment, requesting minimal police custody.
Further Investigation Underway
Authorities are now working to recover the remaining funds and identify other possible accomplices. Investigators are also verifying Mehta’s trail of transactions and the exact role of Paun in routing the embezzled money.