08 April,2025 12:11 PM IST | Mumbai | Faizan Khan
The EOW has uncovered that several non-performing assets (NPAs) linked to the bank had been sold to the said ARC
Hiren Bhanu, the absconding former vice chairman of the New India Cooperative Bank, and his wife Gauri Bhanu - both currently believed to be abroad - have submitted written statements to the Economic Offences Wing (EOW), denying any involvement in the Rs 122 crore embezzlement scam that has rocked the bank. The couple has also formally requested permission to appear before the EOW via video conferencing. Officials, however, are yet to take a call on whether such virtual statements will be permitted. Bhanu's counsel Sajal Yadav has confirmed this.
In their statements submitted separately on March 18, 2025, Hiren and Gauri Bhanu have denied all allegations linking them to the Rs 122 crore embezzlement scam and claimed they are being falsely implicated. They are accused of colluding with the main accused, Hitesh Mehta - who allegedly siphoned off the funds - of which Hiren Bhanu is said to have received Rs 26 crore and Gauri Bhanu Rs 2 crore.
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In his statement, Hiren Bhanu provided a comprehensive explanation of the bank's internal operations, especially in relation to cash management and audit oversight. He stressed that the New India Cooperative Bank has been under the Reserve Bank of India's (RBI) supervision for the past four years and that an RBI-nominated director was a member of the audit committee. Bhanu added that the appointment and functioning of statutory and external auditors were strictly the responsibility of the bank's Internal Audit Department, and that all audit reports were routed through appropriate committees before reaching the board.
Bhanu stated that none of the audit reports in the past five years raised any red flags regarding cash discrepancies, suggesting that neither the board, the chairman, nor the vice chairman would have known about the missing funds. He added that all relevant board and committee minutes have been provided to the police.
Hiren Bhanu described how Hitesh Mehta, a senior employee of over 35 years, disappeared from the bank on February 12 - just as RBI officials visited. That afternoon, the RBI sent an email to senior bank officials querying a Rs 122 crore shortfall in the cash cell, which allegedly fell under Mehta's domain. Bhanu claimed that Mehta later called him and confessed to embezzling the funds, even threatening suicide. Bhanu said he convinced Mehta to return to the bank and admit his guilt to prevent innocent staff from being punished. He remained in touch with Mehta and senior bank officials throughout and has submitted call logs to the police.
According to Bhanu, Mehta returned and confessed his actions to RBI and bank officials but was allowed to leave by a senior RBI officer, Sanjay Kumar. Bhanu claimed Mehta later boasted he had "managed" the officer, which shocked him. He insisted that it was only due to his intervention that Mehta confessed, which expedited the investigation and protected employees and depositors.
Bhanu also submitted an affidavit allegedly written by Mehta, accepting full responsibility for the scam. He stated that his family had invested around Rs 4 crore in bank shares and had deposits exceeding Rs 1.5 crore with NICB. He emphasized they had inherited their properties, made no suspicious purchases, and all investments were reflected in tax returns.
Hiren Bhanu described how Hitesh Mehta, a senior employee of over 35 years, disappeared from the bank on February 12 - just as RBI officials visited. That afternoon, the RBI sent an email to senior bank officials querying a Rs 122 crore shortfall in the cash cell, which allegedly fell under Mehta's domain. Bhanu claimed that Mehta later called him and confessed to embezzling the funds, even threatening suicide. Bhanu said he convinced Mehta to return to the bank and admit his guilt to prevent innocent staff from being punished. He remained in touch with Mehta and senior bank officials throughout and has submitted call logs to the police.
Bhanu claimed that Mehta later contacted him in a distraught state, confessed to siphoning the funds, and even threatened suicide. Bhanu said he persuaded Mehta to return to the bank and admit to his misdeeds so that innocent employees would not suffer. He has submitted call logs supporting his communication with Mehta and senior bank officials during this time.
According to Bhanu, Mehta did return and confessed his actions to the RBI and bank officials but was inexplicably allowed to leave by senior RBI officer Sanjay Kumar. Bhanu further alleged that Mehta later boasted about "managing" the officer, which shocked him. He insisted that Mehta's confession was only possible due to his own intervention and that this action helped protect the interests of both bank staff and depositors.
Bhanu also submitted an affidavit allegedly authored by Mehta, accepting full responsibility for the scam. He added that his family has over â¹1.5 crore in deposits with the bank and investments worth Rs 4 crore in its shares, none of which are suspicious and all of which are accounted for in their tax records. He stressed that their properties were inherited, and no unusual purchases had been made.
In her statement, Gauri Bhanu reiterated that Mehta had been a trusted associate of the family since her father-in-law's time and managed their personal finances. She claimed that another employee, Mr. Patel, regularly withdrew cash from the family's accounts using self-cheques, which was then handed over to Mehta and subsequently delivered to her as needed. She has submitted a detailed account statement, including cheque numbers and withdrawal records.
Gauri Bhanu further clarified that she had left India for a pre-planned holiday before February 12 and denied media reports suggesting she had been tipped off by RBI officials. Both Bhanus have categorically denied any wrongdoing and maintain that they are victims of circumstances and betrayal by Mehta.
