New India Cooperative Bank case: How benami siphoned off Rs 18 crore from accused

The accused Unnanathan Arunachalam (left, in pic) with a police official at the Esplanade court on Sunday

The Economic Offences Wing (EOW) has arrested Haji Javed Aazam, the younger brother of BJP's former Maharashtra secretary Hyder Aazam, in connection with the Rs 122 crore embezzlement case involving New India Co-operative Bank. His arrest follows the interrogation of businessman Unnanathan Arunachalam, alias Arun Bhai, who was apprehended from Crawford Market on Saturday.

Customers visit New India Co-operative Bank's Kandivli Mahavir Nagar branch on February 14. Pic/Nimesh Dave

Aazam was produced in court on Tuesday and remanded in police custody until March 24. During questioning, Arunachalam reportedly admitted to receiving R32 crore from Hitesh Mehta in 2019, of which Rs 18 crore was given to Javed Aazam for safekeeping. A few days later, Aazam allegedly told Arunachalam that the money had been stolen from his shop. When Arunachalam visited the shop, he found the lock broken and the place ransacked, but no police complaint was filed as the amount was in cash.

Investigators found that Hitesh Mehta had withdrawn R18 crore from two banks, where it was held as fixed deposits, before handing it over to Arunachalam. Instead of being deposited in New India Co-operative Bank, the funds were diverted, while official records falsely claimed the cash was secured in the bank's vault. Further investigations revealed that Aazam allegedly helped Arunachalam evade authorities. Arunachalam remained absconding for days before being caught near Crawford Market. His statements led to Aazam's arrest on Monday evening. So far, the EOW has arrested seven accused in the case, including Javed Aazam.