ED Files Money Laundering Complaint Against Ex-New India Co-operative Bank Official, 7 Others

Mumbai, October 14, 2026: The Enforcement Directorate (ED) has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA) against Hitesh Mehta, former general manager and head of accounts at New India Co-operative Bank Ltd (NICBL), and seven others in connection with the alleged embezzlement of around Rs 122 crore of bank funds. A special PMLA court in Mumbai has ordered the issuance of pre-cognisance notices to the accused.

ED Investigation Into Alleged Embezzlement

The ED’s Mumbai Zonal Office initiated its investigation on the basis of an FIR registered by the Mumbai Police’s Economic Offences Wing (EOW) in connection with the alleged embezzlement.

According to the ED, Mehta played a key role in siphoning off bank funds by manipulating accounting systems and creating false records of cash transfers between bank branches. The investigation further revealed that the alleged diversion of funds was carried out at the behest of another accused, a former chairman and vice-chairman of the bank, who allegedly exercised control over its operations, directly and through associates and family members.

Alleged Transfers To Bank Officials

The ED alleged that the proceeds of crime were transferred to various individuals and entities, including the main accused. Around Rs 26 crore to Rs 30 crore was allegedly transferred to the bank’s former and acting chairman and vice-chairman.

The agency further alleged that Hiren Bhanu, in connivance with certain borrowers of the bank, acquired a company or business entity abroad without paying any consideration. Funds were subsequently routed into the accounts of these foreign companies through some of the Indian borrowers who had received substantial loans from the bank.

Properties Attached, Warrants Initiated

Earlier, the ED had provisionally attached 33 movable and immovable properties, including fixed deposits, bank balances, flats, commercial offices and agricultural land, valued at approximately Rs 16.95 crore. The attachment has been confirmed by the PMLA Adjudicating Authority, the agency said.

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The EOW has already filed charge sheets in the case. Non-bailable warrants and proclamation proceedings have also been initiated against Bhanu, according to the ED. The agency said the accused were currently outside India and had not cooperated with the investigation.

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