In a major development shaking the banking and real estate sectors, a top official from New India Cooperative Bank has been arrested for allegedly embezzling Rs 122 crore. The bank’s general manager and head of accounts, Hitesh Mehta, has reportedly admitted to transferring Rs 70 crore to real estate developer Dharmesh Paun to complete an SRA project in Charkop, Kandivali.
The case was registered by Devarshi Ghosh, the bank’s acting chief executive officer, at Dadar police station and has since been handed over to the Economic Offences Wing of Mumbai police. Along with Mehta, developer Dharmesh Paun was also taken into custody, and both have been remanded in police custody until February 1. Following the case registration, Mumbai police issued lookout circulars against Mehta and Unnathan Arunachalam (alias Arun Bhai, 55), a solar panel businessman. According to police reports, Mehta disclosed that he allocated Rs 70 crore to Paun and an additional Rs 40 crore to Arunachalam, while also admitting that a portion of the funds was diverted for his personal use.
The alleged embezzlement came to light when Reserve Bank of India (RBI) officials, during an inspection of the bank’s corporate office in Prabhadevi, discovered a significant shortage of funds in the safe. This led to a meeting with bank employees, during which Mehta claimed he was the custodian of the funds and assured that he would return the money. Investigators are now probing why an audit failed to uncover that such embezzlement had been reportedly occurring for the last five years.
This case not only highlights serious lapses in financial governance at New India Cooperative Bank but also raises broader concerns about internal controls within cooperative banking institutions. As the investigation continues, authorities are working to piece together the full extent of the fraudulent activities and assess the impact on the bank’s financial health.