EOW investigates 400 crore loan scam in Mumbai

The Economic Offences Wing (EOW) in Mumbai is investigating a case involving the New India Cooperative Bank, where Rs 122 crore has gone missing. The EOW has launched a preliminary inquiry against Hiren Bhanu, the former chairman of the bank. He is accused of approving loans worth over Rs 400 crore in exchange for bribes. Hiren Bhanu, who is 57 years old, is currently a fugitive and is believed to be in the United Arab Emirates. His wife, Gauri Bhanu, is also on the run and may be in Thailand. Mumbai police have requested assistance from the Central Bureau of Investigation and Interpol, issuing blue corner notices to locate the couple. The investigation reveals that Hiren Bhanu took control of the bank by filling the board of directors with his allies. This allowed him to approve loans for individuals who bribed him from 2010 to 2023. Many of these loans have become non-performing assets (NPAs). So far, investigators have not received any formal complaints about these NPAs. The EOW has made seven arrests in connection with this case, including the bank’s general manager, Hitesh Mehta. He is accused of colluding with Hiren Bhanu to misappropriate bank funds. The EOW plans to question Devarshi Ghosh, the acting CEO of the bank and a key complainant in the missing funds case. A forensic audit of the NPAs is also being considered based on the information gathered from bank officials. The EOW's investigation is being overseen by senior officers, including joint commissioner Nishith Mishra.