A high-profile embezzlement case has rocked New India Co-Operative Bank, with its former chairperson Hiren Bhanu, 58, and vice chairperson Gauri Bhanu, 50, now wanted by the Mumbai police’s Economic Offences Wing (EOW). The couple, who allegedly siphoned off Rs 28 crore from a total of Rs 122 crore embezzled from the bank, are currently abroad, evading authorities. Hiren, who has surrendered his Indian citizenship to become a British national, and Gauri held their top posts during the period when the financial misconduct occurred.
The scandal came to light following an inspection by the Reserve Bank of India (RBI), which uncovered irregularities in the bank’s cash safes. Initially registered at Dadar police station, the case was swiftly transferred to the EOW for a deeper investigation. Alongside the Bhanu couple, civil contractor Kapil Dedhia and another individual, Unnathan Arunachalam (alias Arun Bhai), are also wanted, bringing the total number of fugitives in the case to four.
The EOW has already arrested several key figures involved in the scam. Hitesh Mehta, the bank’s former general manager and head of accounts, is considered the mastermind. He allegedly funneled Rs 41 crore to real estate developer Dharmesh Paun, Rs 10 crore to Kapil Dedhia, and Rs 33 crore to Arunachalam. Additionally, Mehta is linked to another Rs 7 crore transferred to Arunachalam outside the trust deposits. The probe revealed that Mehta owns substantial properties, including a Rs 2 crore flat in Vikhroli, a Rs 1.5 crore shop, two flats in Dahisar worth Rs 2 crore and Rs 1.5 crore respectively, and a bungalow in Valsad, Gujarat. The EOW plans to seek attachment of these assets as the investigation progresses.
Also in custody are Abhimanyu Bhoan, the bank’s former CEO, and Dharmesh Paun. Bhoan reportedly remained in contact with Hiren and Gauri via phone after the RBI exposed the embezzlement. However, when questioned, he claimed his device was damaged and misplaced. A search of Bhoan’s laptop uncovered personal documents belonging to Hiren, including his passport and RBI notices issued to the bank, further implicating the couple.
On Friday, the EOW submitted an application in court to conduct forensic psychological tests, including a lie detector test, on Mehta to uncover additional details. The court granted permission, marking a significant step in the investigation.
The embezzled funds were allegedly diverted through a complex web of transactions. Arunachalam received Rs 15 crore in May 2019 and Rs 18 crore in August 2019 from Mehta to deposit into two trusts, one of which was Hyderabad-based. Arunachalam reportedly promised that depositing Rs 15 crore would yield Rs 22 crore, and a further Rs 18 crore investment would also return Rs 22 crore, by evading income tax and leveraging trust rebates. Meanwhile, arrested accused Manohar Arunachalam transferred funds from his consultancy firm’s account to Mehta, adding another layer to the financial scheme.
The case has raised serious questions about oversight and accountability in India’s cooperative banking sector. With the Bhanu couple and their associates still at large, the EOW continues its efforts to unravel the full extent of the fraud and bring the perpetrators to justice. As the investigation deepens, authorities are determined to recover the misappropriated funds and hold those responsible accountable for one of Mumbai’s most audacious financial crimes in recent years.