New India Cooperative Bank Scam: Builder Dharmesh Paun Arrested As EOW Intensifies ₹122 Crore Fraud Probe

Mumbai: The Economic Offences Wing (EOW) has made another major arrest in the ₹122 crore New India Cooperative Bank scam, taking builder Dharmesh Paun (58) into custody. Investigations have revealed that Paun embezzled ₹70 crore from the scam. His arrest follows the detention of Hitesh Mehta, the bank’s General Manager and Head of Accounts, who was arrested yesterday.

Both Paun and Mehta were produced before the court, which has remanded them in police custody until February 21.

According to EOW officials, Mehta transferred ₹1.75 crore to Paun between May and December 2024, ₹50 lakh in January 2025, and ₹40 crore to wanted accused Unnathan Arunachalam, alias Arunbhai.

Investigations revealed that Mehta misappropriated bank funds, transferring ₹70 crore to Paun and ₹40 crore to Arunbhai, while keeping a percentage as profit. Additionally, authorities discovered that Mehta purchased a flat from Paun, further linking them in the financial fraud.

Police sources confirmed that Arunbhai is a suspect in the case and remains on the run. Authorities are intensifying their search to locate him.

The scam involved siphoning off customers’ deposits from the Prabhadevi and Goregaon branches of the bank. The EOW is conducting an extensive probe, and more arrests and critical findings are expected in the coming days.

However, during interrogation, Mehta provided evasive answers regarding the misappropriated amount. EOW officials highlighted in court that investigators are probing whether other individuals assisted Mehta in the scam. Authorities are examining if any other bank staff were involved in the fraudulent transactions.

Mehta withdrew the embezzled funds from the Prabhadevi and Goregaon branches, raising questions about possible internal support during the siphoning process. Investigators are working to identify individuals who may have actively helped execute the scam.

The stolen funds belong to general depositors, and the fraud has severely impacted a large number of people, making this a serious financial crime requiring a thorough probe. With the ongoing investigation, the EOW is expected to uncover more names linked to the scam, and further arrests may follow.