Mumbai Police Arrest Two in ₹122 Crore New India Cooperative Bank Fraud Case

The Economic Offences Wing has detained the bank's former general manager and a builder, while a third key suspect remains at large.

Hitesh Mehta, the former general manager of New India Cooperative Bank, and builder Dharmesh Paun have been arrested in connection with a ₹122 crore embezzlement scheme spanning 2020 to 2025.
Mehta allegedly siphoned funds from the bank's Prabhadevi and Goregaon branches, with ₹70 crore funneled to Paun and ₹40 crore to a fugitive suspect, Unnathan Arunachalam, also known as Arunbhai.
The fraud was uncovered during an audit by the Reserve Bank of India, which found significant cash discrepancies in the bank's safes and subsequently imposed operational restrictions on the bank.
The RBI has barred withdrawals, superseded the bank's board, and appointed an administrator to manage its affairs for one year, prompting concerns among depositors about the safety of their funds.
Authorities are intensifying their investigation, with further arrests and revelations expected as they probe potential involvement of additional bank staff and associates in the scam.