Scandal Unveiled: Former Bank Vice Chairman Blames Hitesh Mehta for Rs 122 Crore Fraud

New Delhi: In a stunning twist in the New India Cooperative Bank scam, former Vice Chairman Hiren Bhanu has accused arrested officer Hitesh Mehta of masterminding an alleged Rs 122 crore embezzlement scheme. Bhanu, who faced accusations of fleeing the country amidst the investigation, clarified that he has actually been living abroad for the past 30 years with his wife, Gauri Bhanu, the bank's acting chairperson.

In a recent statement to the Mumbai Police's Economic Offences Wing (EOW), Bhanu vehemently denied all allegations against him and his wife, asserting that Gauri's recent trip to Thailand was pre-planned and unrelated to any criminal activities.

Bhanu claims that on the day RBI officials visited the bank's Prabhadevi headquarters, Mehta confessed to him over the phone in Gujarati about embezzling funds for over five years. Bhanu, alleged to have received Rs 26 crores from Mehta, refuted these claims, emphasising that neither he nor Gauri received any embezzled funds from the bank.

Highlighting the bank's governance structure, Bhanu noted that it was under RBI supervision for the last four years, with an RBI-nominated director on the audit committee.

He pointed out that no discrepancies in cash balances were reported by external auditors in the last five years, suggesting that he and the board were unaware of any missing funds.

Detailing the events of that fateful day, Bhanu recounted how after RBI officials summoned senior management, Mehta mysteriously disappeared from the premises. Alarm bells rang when an email from the RBI questioned the missing Rs 122 crores, prompting a frantic response from bank officials.

Bhanu received a call from Mehta, who admitted to the embezzlement and expressed suicidal thoughts. Bhanu claims he persuaded Mehta to return to the bank and confess to the RBI officials. Following his return, Mehta allegedly confessed his role in the crime.

In his discussions with Bhanu, he reportedly revealed that Rs 70 crores were funnelled to a Dahisar-based building, alongside funds hidden with six other individuals.

Bhanu also dismissed the accusations of receiving Rs 26 crores, asserting that all income sources are accurately documented in their income tax returns. He emphasised the absence of evidence against him, mentioning that a lie detector test conducted on Mehta yielded negative results.

Bhanu raised concerns about how such fraud could go unnoticed under RBI scrutiny since 2021, casting serious doubt on the integrity of the ongoing investigation.