The Enforcement Directorate (ED) has filed a chargesheet against eight people in connection with the alleged siphoning of money through fake account entries and illegal transfers at New India Co-operative Bank Limited (NICBL). Investigators accused them of siphoning off around Rs 122 crore through fraudulent financial transactions.
Filed under the Prevention of Money Laundering Act (PMLA) in a Special Court, the chargesheet names former General Manager Hitesh Mehta alongside seven other accused for their roles in orchestrating the fraud and siphoning off the funds, as per NDTV.
According to the ED, Mehta manipulated branch accounting entries to secretly move funds. He reportedly confessed to acting under directions from the bank's former chairman and vice-chairman, who allegedly received between Rs 26 crore and Rs 30 crore of the diverted money.
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The agency is also investigating the alleged role of Hiren Bhanu, another key accused, who is accused of colluding with bank borrowers to facilitate the illegal acquisition of a foreign company. Investigators allege that loan funds were subsequently channelled into accounts maintained overseas as part of the suspected financial irregularities.
The ED has attached or seized 33 movable and immovable properties in connection with the case. These include residential flats, commercial properties, agricultural land and bank deposits, with a combined value of approximately Rs 16.95 crore. The action forms part of the agency's efforts to trace and secure assets allegedly linked to the proceeds of crime.
Bhanu is currently absconding, and the Economic Offences Wing (EOW) has initiated proceedings to have him declared a fugitive. The ED has also noted that several accused persons have allegedly fled abroad, complicating efforts to pursue the investigation and recover the diverted funds.
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The case centres on allegations of financial misconduct within the cooperative bank, including the alleged falsification of internal records, diversion of cash and misuse of loan proceeds. Investigators are examining the roles of the accused, the movement of the funds and the assets allegedly acquired through the transactions.
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