The Economic Offences Wing (EOW) of the Mumbai Police has made a fourth arrest in connection with the Rs 122 crore embezzlement case at the New India Co-operative Bank’s Prabhadevi branch. Investigations revealed discrepancies in cash records, with the branch’s safe—designed to hold Rs 10 crore—showing an inflated balance of Rs 122.03 crore on the day of a Reserve Bank of India (RBI) inspection.
So far, three individuals, including two former senior executives of the bank, have been taken into custody as part of the probe. Authorities are now examining the role of auditors and other officials who may have overlooked irregularities in financial records. Meanwhile, in a move to provide relief to depositors, the RBI on Monday (February 24) permitted withdrawals of up to Rs 25,000 per account, effective from Thursday, February 27.
Here’s a look at timeline of the New India Cooperative Bank scam
February 11: The scam came to light after an RBI inspection at the bank’s corporate office in Prabhadevi. While the safe had a storage capacity of Rs 10 crore, records showed Rs 122 crore in cash, raising suspicions of financial irregularities.
February 13: The RBI imposed restrictions on the bank, barring it from issuing new loans, accepting fresh deposits, or disbursing payments without prior approval. Withdrawals from savings and current accounts were also suspended for six months.
Also Read: New India Co-op Bank depositors can withdraw up to Rs 25,000 soon—5 things to know
February 14: Following RBI’s directive, anxious customers gathered outside the bank’s branches, demanding answers about their deposits. Later that day, the RBI superseded the bank’s board for 12 months and appointed former SBI chief general manager Shreekant as the administrator.
February 15: The Mumbai Police’s EOW arrested Hitesh Mehta, the bank’s general manager and head of accounts, for allegedly siphoning off Rs 122 crore. The arrest was made based on a complaint by the bank’s CEO, Devarshi Shishir Kumar Ghosh. Police revealed that Mehta had misappropriated funds between 2020 and 2025, embezzling Rs 112 crore from the Prabhadevi branch and Rs 10 crore from Goregaon.
February 16: A Mumbai court remanded Mehta to five-day police custody. The police found that Rs 70 crore of the embezzled funds were linked to Dharmesh Paun, a builder, who had received Rs 1.75 crore between May and December 2024 and an additional Rs 50 lakh in January 2025. Another accused, Unnathan Arunachalam alias Arunbhai, was declared wanted.
February 20: The EOW arrested Abhimanyu Bhoan, former CEO of New India Cooperative Bank, after two days of questioning. Bhoan, along with Mehta and Paun, was produced before a court and remanded in police custody until February 28.
February 24: In a relief to depositors, the RBI allowed withdrawals of up to Rs 25,000 per account, effective from February 27, after reviewing the bank’s liquidity position with the administrator.
February 25: Police investigations revealed discrepancies in the bank’s records. The balance sheet at the Prabhadevi and Goregaon branches showed Rs 133.41 crore in the safes, but the actual cash available was significantly lower. The safe at the corporate office, which had a capacity of Rs 10 crore, contained only Rs 60 lakh during the inspection. At the Goregaon branch, Rs 10.53 crore was found, matching its storage capacity.
The EOW also launched an inquiry into auditing firms that had reviewed the bank’s financial records but failed to detect the fraud. Several auditors were summoned for questioning.
February 28: The EOW arrested the son of a businessman wanted in connection with the scam, further deepening the investigation.
(With inputs from agencies)
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