Mumbai: Ex-New India Cooperative Bank CEO Arrested in Multi-Crore Fraud Case

The Economic Offences Wing (EOW) of the Mumbai Police has arrested Abhimanyu Bhon (45), the former CEO of New India Cooperative Bank, in connection with a multi-crore scam. Bhon was taken into custody on Thursday night.

According to senior EOW officials, Bhon was fully aware of the fraudulent activities happening at the bank during his tenure as CEO from 2019 to 2024, and he was actively involved in the scam. Sources within the EOW revealed that Bhon had accepted a bribe of ₹1 crore from accused Hitesh Mehta to increase the cash limit of the bank’s Prabhadevi branch.

An EOW officer explained that, as per bank policy, the main branch had a cash holding limit of ₹20 crore, while other branches were allowed a maximum of ₹10 crore. As CEO, Bhon had direct control over all branches and reported to the Board of Directors. After bribing Bhon, the bank’s General Manager, Hitesh Mehta, illicitly deposited ₹130 crore at his branch and later siphoned off ₹122 crore.

Investigations have revealed that Mehta withdrew money in small amounts on nearly 100 occasions, either himself or through his staff, and handed it over to associates outside the bank.

Bhon had joined the bank in December 2009 as Vice President of the IT department and was appointed CEO for five years in 2019. His tenure was set to end in September 2024, following which the bank proposed an extension to the Reserve Bank of India (RBI). However, the RBI rejected the proposal twice. Eventually, on February 6, 2025, Bhon was officially relieved of his duties.

Soon after his removal, the bank scam came to light, prompting EOW officials to summon Bhon for questioning on Wednesday and Thursday. Investigations also revealed that Bhon had taken bribes to sanction loans. On the day the RBI team inspected the branch, cash reserves were found to be significantly lower than the permitted limit.

Bhon’s arrest came after two days of interrogation, during which substantial evidence emerged against him. This marks the third arrest in the case, following the detention of Hitesh Mehta and Dharmesh Poun. The accused were produced before the MPID Court on Friday, which remanded them to police custody until February 28.