The Enforcement Directorate (ED) has intensified its investigation into the ₹122 crore embezzlement case involving the New India Cooperative Bank (NICB). On April 24, 2025, the ED conducted searches at seven locations across Mumbai and Gujarat under the Prevention of Money Laundering Act (PMLA). During these operations, the agency seized valuables worth approximately ₹1 crore, including property documents and other incriminating materials .​

The investigation focuses on former NICB chairman Hiren Bhanu, who allegedly diverted over ₹45 crore from the bank to his overseas entities. The ED’s findings suggest that these funds were funneled through loan accounts that later became non-performing assets (NPAs) .

In addition to Bhanu, several individuals have been arrested in connection with the fraud, including former General Manager Hitesh Mehta and businessman Dharmesh Paun . Bhanu and his wife, Gauri Bhanu, the former vice-chairperson, are currently absconding, and a Blue Corner notice has been issued for their extradition

The Mumbai Police’s Economic Offences Wing (EOW) is also investigating over 2,000 suspect loans and NPAs amounting to approximately ₹400 crore . Depositors have expressed concerns over the bank’s future, with some pushing for its revival or merger to protect their interests .

Sources