Mumbai, April 8: The Enforcement Directorate (ED), Mumbai Zonal Office, has provisionally attached assets worth around Rs 16.95 crore in connection with a money laundering probe linked to alleged large-scale embezzlement at New India Co-operative Bank Ltd (NICBL).
Assets attached under PMLA
The attached assets include fixed deposits, bank balances, flats, commercial properties, and agricultural land spread across multiple locations. The action covers 33 immovable and movable properties belonging to Hiren Bhanu and members of his family under the Prevention of Money Laundering Act (PMLA), 2002.
Probe linked to Rs 122 crore fraud
The ED action stems from an FIR registered by the Economic Offences Wing (EOW), Mumbai Police, in a case involving alleged siphoning of around Rs 122 crore from the bank’s cash holdings.
Role of bank officials under scrutiny
According to the agency, the probe has revealed that Hitesh Pravinchandra Mehta, former General Manager and Head of Accounts at NICBL, played a key role in siphoning off funds by manipulating accounting systems and creating false records of cash transfers between branches. The probe also notes that Mehta admitted to withdrawing funds over an extended period.
Alleged involvement of bank leadership
Investigators further stated that these activities were allegedly carried out at the behest of Hiren Ranjit Bhanu, former Chairman and Vice-Chairman of the bank, who allegedly exercised control over the institution’s functioning directly and through associates and family members. His wife, Gauri Hiren Bhanu, who also served as Acting Chairman and Vice-Chairman, has been identified as one of the beneficiaries of the alleged misappropriated funds.
The ED has alleged that Hiren Bhanu and his wife collectively received proceeds of crime amounting to at least Rs 26 crore.
Foreign entity link and fund diversion
The investigation has also revealed that Bhanu, in alleged connivance with certain borrowers linked to the bank, allegedly acquired a foreign business entity without any payment of sale consideration. Funds were subsequently routed into accounts of such overseas entities through Indian borrowers who had been sanctioned substantial loans by NICBL, the agency said.
Legal action and current status
The EOW has already filed charge sheets in the matter, while non-bailable warrants and proclamation proceedings have been issued against Hiren Bhanu. Officials said the accused are currently believed to be outside India and are not cooperating with the probe.
Regulatory action and bank merger
New India Cooperative Bank has been under intense regulatory scrutiny since February 2025. Following the scandal, the Reserve Bank of India (RBI) approved the merger of the distressed bank with Saraswat Cooperative Bank under the Banking Regulation Act, 1949. In July 2025, Saraswat Bank had voluntarily approached the RBI to take over NICBL to protect depositors and stabilise the urban co-operative banking sector.
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Ongoing investigation
The ED is continuing its efforts to trace the full trail of diverted funds and identify additional beneficiaries in the fraud that has significantly impacted the bank’s depositors.
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