New India Co-operative Bank Fraud: Various incriminating evidence were traced revealing diversion of bank funds from those loan accounts which later turned NPA, into the overseas entities of Hiren Bhanu, Ex-Chairman of the Bank
FinTech BizNews Service
Mumbai, April 26, 2025: Directorate of Enforcement (ED), Mumbai Zonal office has conducted search operation on 24.04.2025, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 at seven premises in Mumbai and Gujarat in the case of New India Co-operative Bank fraud, according to the press release issued by the ED. During the search operation, various incriminating documents including property related documents and valuables of around Rs.1 Crore have been found and seized.
During the search operation, various incriminating evidence were traced revealing diversion of bank funds from those loan accounts which later turned NPA, into the overseas entities of Hiren Bhanu, Ex-Chairman of the Bank. Details / documents of such transactions amounting to more than Rs45 Crore sent to foreign entities relating to Hiren Bhanu, have been ascertained which are being examined during the course of ongoing investigation.
The ED's investigation was initiated on the basis of the embezzlement of cash amounting to Rs122 Crore from the New India Co-operative Bank unearthed during the Risk Assessment of New India Cooperative Bank Ltd., conducted by RBI. The EOW, Mumbai is also conducting investigation in the case of New India Co-operative Bank fraud under various sections of BNS. Investigation is being carried out to trace the funds diverted from the Bank to individual(s) / entities, resulted in fraud with the Bank as well as the depositors of the Bank. Further investigation is under progress.
