The fraud involved manipulation of bank records, siphoning funds, and routing money to foreign entities. Both accused remain abroad, and investigations are ongoing
Accused remain abroad as ED continues investigation and fund tracing. Representational Image
The Enforcement Directorate (ED) has provisionally attached 33 properties worth nearly Rs 16.95 crore belonging to Hiren Ranjit Bhanu, his wife Gauri Hiren Bhanu, and other family members under the Prevention of Money Laundering Act (PMLA), 2002, reported the IANS.
The attached assets include residential flats, commercial offices, agricultural land, bank balances, and fixed deposits. Officials said this move is part of an ongoing investigation into a massive Rs 122 crore embezzlement at the New India Co-operative Bank Limited (NICBL).
The fraud
The probe by the Mumbai Zonal Office of the ED was based on a FIR by Mumbai Police’s Economic Offences Wing (EOW). Investigators found that Hitesh Pravinchandra Mehta, the then General Manager and Head of Accounts at NICBL, played a central role in siphoning off funds by manipulating accounting records and creating fake cash transfer entries between branches, according to the IANS.
Mehta admitted to withdrawing funds over several years. The investigation revealed that he acted on instructions from Hiren Ranjit Bhanu, former Chairman and Vice-Chairman of NICBL, who controlled the bank’s operations through associates and family members.
“The couple allegedly received proceeds of crime amounting to at least Rs 26 crore,” the ED said, reported IANS.
Gauri Hiren Bhanu, who served as Acting Chairman and Vice-Chairman, was identified as a key beneficiary of the fraud.
Diversion of funds abroad
The investigation also uncovered that Hiren Ranjit Bhanu, with the help of some bank borrowers, acquired companies and business entities abroad without paying any sale consideration. Funds were routed through the accounts of these Indian borrowers who had taken substantial loans from NICBL.
The Mumbai Police EOW has already filed charge sheets in the case. Non-bailable warrants and proclamation proceedings have been issued against Hiren and Gauri Bhanu, both of whom are currently abroad and not cooperating with the investigation.
“Further investigation is underway to trace the diverted funds and identify all individuals and entities involved in this fraud, which has severely impacted the bank and its depositors,” an ED official said.
Broader crackdown on cooperative bank frauds
This attachment follows earlier ED actions including searches and seizures. Officials said the development highlights a continued crackdown on financial frauds in cooperative banks and laundering of proceeds through complex domestic and international channels.
(With IANS Inputs)
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