In a major development in the Rs122 crore fraud case involving New India Co-operative Bank, the Economic Offences Wing (EOW) has received approval from the Metropolitan Magistrate to seize 21 properties linked to five accused individuals. This decision is considered a significant relief for the bank’s depositors, who have been waiting for justice.
The properties, valued at approximately Rs 167 crore, were acquired using funds obtained from the scam. The EOW had sought permission under Section 107 of the Indian Civil Protection Code, arguing that these assets were purchased through the proceeds of crime during the investigation into the fraud. The court, after considering the police's arguments, approved the attachment of these immovable properties. This marks the first instance in Mumbai where property seizure has been executed under Section 107.
The properties in question are spread across Maharashtra, Gujarat, and Bihar. Among them, accused Hitesh Mehta and his family own seven flats, one shop, and a bungalow, with a combined value of Rs 12 crore. Manohar Arunachalam owns a shop worth Rs1.5 crore, while Kapil Dedhia has a flat valued at Rs75 lakh. Electronics worth Rs 55 lakh have been seized from Javed Azam’s showroom. Additionally, a shop in Madhubani worth Rs 55 lakh and a flat in Patna valued at Rs 50 lakh are included in the attachment, bringing their total worth to Rs 1.5 crore. Authorities have also frozen Rs 2.5 crore in rent advances given for 10 shops in Bihar. A significant asset in this case is a 40,000 sq. ft. slum redevelopment project linked to accused Dharmesh Paun, valued at Rs 150 crore.
The case was filed after a complaint by New India Co-op Bank’s Acting CEO, Devarshi Ghosh, at the Dadar Police Station. Based on the investigation, a case was registered under Sections 316(5) and 61(2) of the Bhartiya Nyaya Sanhita. The EOW arrested the bank’s former General Manager, Hitesh Mehta, who is considered the mastermind behind the scam. Information obtained from Mehta led to the arrest of builder Dharmesh Paun. The police also arrested the bank’s then-CEO, Abhimanyu Bhoan, along with Manohar Arunachalam, Kapil Dedhia, and Unnathan Arunachalam.
Further investigations revealed that two accused, Hiren Bhanu and Gauri Bhanu, are currently abroad. To prevent them from fleeing further, the authorities have issued a lookout notice against them. The recent crackdown by the EOW is being seen as a significant step towards recovering the misappropriated funds and ensuring justice for the depositors affected by the scam.