The Economic Offences Wing (EOW) of the Mumbai police is struggling to figure out how accused Hitesh Mehta siphoned depositor money from New India Co-operative Bank and re-lent it to developers off the books. Investigators say Mehta withdrew large sums from the bank vault, allegedly funding SRA developer Dharmesh Paun and another absconding accused linked to the solar business, all while charging interest.
 
Mehta claims he lent Rs 70 crore to Paun and Rs 40 crore to the solar businessman, but Paun, in his statement to the EOW, insists he received only Rs 2 crore, which he later returned. With no digital or official records of these cash transactions, officials suspect deeper involvement from within the bank—and possibly even the RBI—questioning how the New India Co-operative Bank scam went undetected for years despite regular audits.

Customers rush to the New India Co-op Bank in Andheri after strict withdrawal curbs last Friday. Pic/Nimesh Dave