Co-op bank CEO questioned in Mumbai loan investigation

Devarshi Ghosh, the acting CEO of New India Cooperative Bank, has met with the Mumbai Police's Economic Offences Wing (EOW). He was called to provide information about loans given by the bank recently. The EOW is investigating a complaint regarding the misappropriation of ₹122 crore from the bank's cash reserves. Allegations include loans being given to ineligible borrowers. Hitesh Mehta, the bank’s general manager overseeing accounts, is the main suspect in this case. The complaint was filed by Sachidanand Shetty, who claims that Hiren Bhanu, the former bank chairman, manipulated the board and gave out loans in exchange for kickbacks. Most of these loans are now classified as non-performing assets (NPAs). Shetty also alleges that after the Reserve Bank of India barred Bhanu, he made his wife vice-chairman and continued to extend more loans to hide the NPAs. It is claimed that the misappropriated money was moved to the UK or UAE, where Bhanu owns real estate businesses. Bhanu denies all accusations and states that Hitesh Mehta is the main culprit. In related news, the court denied bail to builder Dharmesh Paun, who is involved in the case. The EOW claims he received over ₹40 crore from the misappropriated funds for his real estate projects. Since the investigation began, eight people have been arrested, including Hitesh Mehta and others associated with the case. Hiren and Gauri Bhanu remain wanted suspects in this ongoing investigation.