Investigation revealed that Hitesh Pravinchandra Mehta, Ex GM and Head of Accounts at New India Co-operative Bank, played a key role in siphoning off bank funds by manipulating accounting systems and creating false records of cash transfers between Bank branches.
FinTech BizNews Service
Mumbai, 14 October, 2026: Directorate of Enforcement (ED), Mumbai Zonal Office, has filed a Prosecution Complaint (PC) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 before the Hon'ble Special Court (PMLA), Mumbai against Hitesh Mehta and 7 others in a matter related to embezzlement of bank funds. The Hon’ble PMLA Special Court has ordered for issuance of pre-cognizance notices to accused in the matter.
Directorate of Enforcement (ED), Mumbai Zonal Office, has filed a Prosecution Complaint (PC) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 before the Hon'ble Special Court (PMLA), Mumbai against Hitesh Mehta and 7 others in a matter related to embezzlement of bank funds. The Hon’ble PMLA Special Court has ordered for issuance of pre-cognizance notices to accused in the matter.
The investigation was initiated by ED on the basis of FIR registered by EOW, Mumbai Police relating to the embezzlement of funds amounting to around Rs. 122 Crore. Investigation revealed that Hitesh Pravinchandra Mehta, former General Manager and Head of Accounts at New India Co-operative Bank Limited (NICBL), played a key role in siphoning off bank funds by manipulating accounting systems and creating false records of cash transfers between Bank branches. He admitted having been withdrawing funds over a prolonged period. The probe further established that these activities were also carried out at the behest of another accused, former Chairman and Vice-Chairman of the Bank, who exercised control over the bank’s operations for several years, directly as well as indirectly through associates and family members. The Proceeds of Crime in this case were transferred to various persons / entities including main accused.
Proceeds of Crime of Rs. 26 to 30 Crore (approx.) were also transferred to the former / Acting Chairman and Vice-Chairman of the bank during relevant time. Investigation has also revealed that Hiren Bhanu, allegedly acted in connivance with some of the borrowers relating to New India Co-operative Bank Limited and has acquired company / business entity situated outside India without paying any sale consideration and subsequently also secured to receive funds in the accounts of such foreign companies, through some of such Indian borrowers to whom substantial amount of loans were sanctioned by NICB Bank.
Earlier, ED has provisionally attached 33 immovable and movable properties in the nature of fixed deposit, bank balance, flats, commercial office, and agricultural land etc. having value of Rs.16.95 Crore (approx.) relating to accused / suspects under the provisions of PMLA, 2002, which has also been confirmed by the Hon’ble Adjudicating Authority, PMLA.
The Economic Offences Wing, Mumbai has already filed charge sheets in the matter, and non-bailable warrants along with proclamation proceedings have also been issued against one of the accused namely Hiren Bhanu. It has also been observed that the accused are currently outside India and have not cooperated with the investigation. Further, 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
