The Economic Offences Wing (EOW) of Mumbai Police has unearthed yet another massive financial scam while probing the earlier ₹122 crore embezzlement case in New India Co-operative Bank. The latest revelations point towards a ₹400 crore loan fraud carried out under the guise of one-time settlements (OTS), with senior bank officials suspected of accepting bribes in return for waiving off large loans.
According to sources, as many as 274 loan accounts were settled through OTS, out of which 176 involved loans of over ₹1 crore each. These settlements, allegedly executed without proper scrutiny or oversight, have now drawn the attention of investigating agencies.
“We suspect this entire OTS operation was a pre-planned scam,” a senior officer from the EOW stated. “In several cases, we found evidence of money being transferred post-settlement, believed to be bribes paid to bank officials. We are preparing to register a fresh FIR for a deeper investigation.”
Officials revealed that bank executives intentionally declared healthy loans as NPAs (Non-Performing Assets) to pave the way for OTS. Once the loan was written off for a significantly reduced amount, insiders allegedly pocketed huge kickbacks in return.
At the center of the scandal are former bank vice-chairman Hiren Bhanu and his wife Gauri Bhanu, who was the acting chairperson during the period in question. Investigators believe both played pivotal roles in orchestrating the scam.
The duo has already been named as key accused in the earlier ₹122 crore embezzlement case and have been declared proclaimed offenders by the court. Despite a Blue Corner Notice being issued for their arrest, authorities have not received any response so far.
Investigators last traced the couple to Dubai, but now suspect they may have relocated to London, as Hiren Bhanu reportedly holds British citizenship. The police are now in the process of issuing a Red Corner Notice through Interpol in a bid to bring them back to India for prosecution.
The scam has raised serious concerns over regulatory lapses and has prompted calls for a thorough audit of all major co-operative banking operations in the city.