Mumbai Court Declares Former New India Cooperative Bank Chairman and Wife as Proclaimed Offenders

In a significant development in the Rs. 122 crore embezzlement case involving New India Cooperative Bank, the magistrate's court in Mumbai has declared former bank chairman Hiren Bhanu and his wife, Gauri Bhanu, as proclaimed offenders. This ruling comes after the Bhanu couple fled the country just days before the scam was uncovered in February 2025. The court also authorized the police to attach 21 properties worth Rs. 167.85 crore, marking a pivotal action under the new criminal laws in Mumbai.

Background of the Case

The embezzlement case surfaced when a forensic audit revealed significant discrepancies in loan accounts, many of which were classified as Non-Performing Assets (NPAs). These accounts were allegedly sold to Omkara Assets Reconstruction Company (ARC) for far less than their actual value. In one instance, the bank sold an NPA worth Rs. 30 crore for just Rs. 2 to Rs. 3 crore, raising suspicions of fraudulent activity.

As part of the investigation, the Economic Offences Wing (EOW) of the Mumbai Police arrested several key individuals, including the bank's former general manager, Hitesh Mehta and ex-CEO, Abhimanyu Bhoan. However, Hiren and Gauri Bhanu fled the country before the scam was exposed, and despite efforts to locate them, they remain out of reach. As a result, the police initiated the process to declare them proclaimed offenders.

Attachment of Properties

The court’s approval to attach 21 properties linked to the accused represents a crucial step in the legal proceedings. The properties include a Rs. 150 crore Slum Rehabilitation Project in Charkop, Mumbai, which is being developed by one of the arrested accused, builder Dharmesh Paun. Additionally, the police have moved to seize multiple properties, including flats, shops, and bungalows belonging to the accused, totaling Rs. 167.85 crore in value.

This action is the first of its kind in Mumbai since the new criminal laws, particularly Section 107 of the Bhar