New India Cooperative Bank Official Arrested for Embezzling Rs 122 Crore, Admits Transferring Rs 70 Crore to Builder for SRA Project

New India Cooperative Bank Official Arrested for Embezzling Rs 122 Crore, Admits Transferring Rs 70 Crore to Builder for SRA Project

New India Cooperative Bank Official Arrested for Embezzling Rs 122 Crore, Admits Transferring Rs 70 Crore to Builder for SRA Project

In a major development shaking the banking and real estate sectors, a top official from New India Cooperative Bank has been arrested for allegedly embezzling Rs 122 crore. The bank’s general manager and head of accounts, Hitesh Mehta, has reportedly admitted to transferring Rs 70 crore to real estate developer Dharmesh Paun to complete an SRA project in Charkop, Kandivali.

The case was registered by Devarshi Ghosh, the bank’s acting chief executive officer, at Dadar police station and has since been handed over to the Economic Offences Wing of Mumbai police. Along with Mehta, developer Dharmesh Paun was also taken into custody, and both have been remanded in police custody until February 1. Following the case registration, Mumbai police issued lookout circulars against Mehta and Unnathan Arunachalam (alias Arun Bhai, 55), a solar panel businessman. According to police reports, Mehta disclosed that he allocated Rs 70 crore to Paun and an additional Rs 40 crore to Arunachalam, while also admitting that a portion of the funds was diverted for his personal use.

The alleged embezzlement came to light when Reserve Bank of India (RBI) officials, during an inspection of the bank’s corporate office in Prabhadevi, discovered a significant shortage of funds in the safe. This led to a meeting with bank employees, during which Mehta claimed he was the custodian of the funds and assured that he would return the money. Investigators are now probing why an audit failed to uncover that such embezzlement had been reportedly occurring for the last five years.

This case not only highlights serious lapses in financial governance at New India Cooperative Bank but also raises broader concerns about internal controls within cooperative banking institutions. As the investigation continues, authorities are working to piece together the full extent of the fraudulent activities and assess the impact on the bank’s financial health.

About the author
Sandeep Sadh

About Sandeep Sadh

Sandeep Sadh has been in the real estate business since 1993 in Mumbai. He has expertise in Buying, Selling, Leasing properties in Mumbai and a deep understanding of legal and tax related matters due to his experience.

Summary

Over the years, he has experienced the City's growth. He has been a columnist in the Times of India with numerous articles, which bring about a clear picture of the real estate market in Mumbai. He is a regular on NDTV, CNBC, ET Now Real Estate and Zee News, giving his experienced quotes as and when required.

Sandeep Sadh has used information and technology since the year 1998 and now what people call it Prop Tech to cater to the needs of Home Buyer, Seller, Investor and Corporates, HNI and NRI looking to Buy/Sell or Lease their properties in the Mumbai Property Market.

Sandeep has a holistic experience of real estate be it Leasing an Apartment for your CEO in the most upmarket buildings, to enter into a long lease for your office in Mumbai in prime buildings or an Investment in good projects with a detailed analysis keeping in mind the Demand and Supply and other micro factors of the project/property.

Sandeep Sadh has developed a few websites like www.mumbaipropertyexchange.com, www.realestatemumbai.com, www.propi.in which augment the real estate consulting business.

Right from Investments in Primary Markets to Selling, leasing and specializing for NRI’s all over the world. He is an expert in NRI Home Buying and Selling and has a good understanding of the Income Tax laws pertaining to Selling a Property and Repatriating funds overseas or reinvesting based on Capital Gains etc.

Experience

  • Residential Leasing
  • Commercial Leasing
  • Residential Home Buying
  • Commercial Property Buying
  • Investment Properties with complete Property Management as your Real Estate Family office

While transacting in the above segments, he has complete experience and deep understanding of the paper work, his areas of expertise are :

  1. Drafting of the Leave and License Agreements
  2. MOU for Buying/Selling Properties
  3. Drafting Agreement for Sale
  4. Gift Deeds
  5. Computing of Capital Gains with current ready reckoner values
  6. Drafting of Supporting Power of Attorney.

As an add on Service, Sandeep Sadh has tied up with various Professionals like Lawyers and Chartered Accountants who add value in transacting and specially services for Non Resident Indians.

Application to Income Tax for Lower Tax Deduction Certificate – Through a qualified CA and keeping a grip on the traction so that the remittance back to Non Resident Indians after Selling the property is seamlessly transferred.

You can connect with Sandeep Sadh on ssadh@mumbaipropertyexchange.com

LinkedIn - https://www.linkedin.com/in/sandeepsadhmpe/