ED charge sheet against ex-NICBL GM Hitesh Mehta, 7 others in ₹122 crore fraud
Synopsis
The ED has charged eight people, including a former General Manager of New India Co-operative Bank, over an alleged ₹122 crore fraud that reportedly involved manipulated accounts, fake cash-transfer records, and overseas fund routing. With a key accused abroad and non-bailable warrants issued, the case is entering a complex cross-border legal phase.
Key Takeaways
The Enforcement Directorate filed a PMLA charge sheet against Hitesh Pravinchandra Mehta and 7 others over an alleged ₹122 crore fraud at NICBL .
Mehta allegedly manipulated accounting systems and created false records of cash transfers between bank branches.
Around ₹26 crore to ₹30 crore was allegedly transferred to the former or acting Chairman and Vice-Chairman of NICBL.
Accused Hiren Bhanu allegedly facilitated acquisition of a foreign business entity without payment; non-bailable warrants have been issued against him.
The ED provisionally attached 33 properties worth approximately ₹16.95 crore , confirmed by the PMLA Adjudicating Authority .
Further investigation is ongoing to trace additional diverted funds.
The Enforcement Directorate (ED) has filed a charge sheet against Hitesh Pravinchandra Mehta, former General Manager and Head of Accounts at New India Co-operative Bank Limited (NICBL), and seven others in connection with an alleged ₹122 crore bank fraud. The charge sheet was filed under the Prevention of Money Laundering Act (PMLA) before a Special PMLA Court in Mumbai, which has since ordered the issuance of pre-cognisance notices to all accused.
How the Fraud Was Allegedly Carried Out
According to the ED, Mehta played a central role in siphoning off funds by allegedly manipulating accounting systems and fabricating records of cash transfers between bank branches. The agency's investigation further indicated that these activities were also conducted at the behest of a former Chairman and Vice-Chairman of the bank, who reportedly exercised control over its operations for several years — directly as well as through associates and family members.
Proceeds of crime were allegedly funnelled to various individuals and entities, including the main accused. The ED claims that approximately ₹26 crore to ₹30 crore was transferred to the former or acting Chairman and Vice-Chairman of NICBL during the relevant period.
Foreign Entity Angle and Overseas Fund Transfers
The investigation also uncovered a cross-border dimension. The ED alleged that an accused identified as Hiren Bhanu acted in connivance with certain NICBL borrowers to acquire a business entity outside India without paying any sale consideration. Funds were subsequently routed to accounts of foreign companies through Indian borrowers who had received substantial loans from the bank.
According to the ED, Bhanu is currently outside India and has not cooperated with the investigation. Non-bailable warrants and proclamation proceedings have been issued against him by the courts.
Attachments and Earlier Action
The ED had earlier provisionally attached 33 movable and immovable properties worth approximately ₹16.95 crore, including fixed deposits, bank balances, flats, commercial premises, and agricultural land. The PMLA Adjudicating Authority subsequently confirmed the attachment.
The case originated from an FIR registered by the Economic Offences Wing (EOW) of the Mumbai Police over the embezzlement of around ₹122 crore from the bank. The EOW has also independently filed charge sheets in the matter.
What Happens Next
The ED has stated that further investigation is ongoing to trace funds allegedly diverted from the bank to additional individuals and entities. The Special PMLA Court's issuance of pre-cognisance notices sets the stage for formal proceedings against all eight accused. With a key accused reportedly abroad, international legal cooperation may become a critical part of the next phase of the probe.
Point of View
Weakened governance structures, and funds routed offshore before investigators close in. The gap between the alleged ₹122 crore embezzlement and the ₹16.95 crore attachment so far underscores how hard asset recovery remains even after PMLA proceedings are initiated. The overseas dimension — a key accused reportedly abroad with non-bailable warrants pending — raises questions about how swiftly India's mutual legal assistance treaty mechanisms will be invoked. Cooperative banks, which serve millions of small depositors, remain structurally more vulnerable to this kind of insider fraud than scheduled commercial banks, yet regulatory oversight continues to lag.
NationPress
14 Oct 2026
Frequently Asked Questions
What is the ED charge sheet against ex-NICBL General Manager Hitesh Mehta about?
The ED has filed a PMLA charge sheet against Hitesh Pravinchandra Mehta, former General Manager and Head of Accounts at New India Co-operative Bank Limited, and seven others over an alleged ₹122 crore bank fraud. The charge sheet alleges fund siphoning through manipulated accounting systems and fabricated cash-transfer records.
How much money has the ED attached in the NICBL fraud case?
The ED has provisionally attached 33 movable and immovable properties worth approximately ₹16.95 crore, including fixed deposits, bank balances, flats, commercial premises, and agricultural land. The attachment has been confirmed by the PMLA Adjudicating Authority.
Who is Hiren Bhanu and what is his role in the NICBL fraud case?
Hiren Bhanu is an accused in the case who allegedly acted in connivance with NICBL borrowers to acquire a business entity outside India without paying any sale consideration, and facilitated routing of funds to foreign company accounts. He is currently reported to be outside India; non-bailable warrants and proclamation proceedings have been issued against him.
What triggered the ED's money-laundering investigation into NICBL?
The ED launched its probe based on an FIR registered by the Economic Offences Wing of the Mumbai Police over the alleged embezzlement of around ₹122 crore from New India Co-operative Bank Limited. The EOW has also separately filed charge sheets in the matter.
What happens next in the NICBL fraud case?
A Special PMLA Court in Mumbai has ordered the issuance of pre-cognisance notices to all eight accused, initiating formal legal proceedings. The ED says further investigation is ongoing to trace additional funds allegedly diverted from the bank, and international cooperation may be required to pursue the accused currently abroad.
