Mumbai Police Arrest Developer Dharmesh Paun for Aiding Rs 122 Crore Embezzlement at New India Cooperative Bank

Mumbai, 17th February 2025: A day after the Mumbai police’s Economic Offence Wing (EOW) arrested Hitesh Mehta, the former general manager and head of accounts at New India Cooperative Bank, for allegedly embezzling Rs 122 crore from the bank, they also detained developer Dharmesh Paun on Sunday for reportedly aiding Mehta in channelling the stolen funds.

Mehta was arrested on Saturday, and his Dahisar residence was raided after the bank’s CEO, Devarshi Shishir Kumar Ghosh, complained to him. The police allege that Mehta, abusing his position, masterminded the embezzlement while Paun assisted him in routing the funds. Both men were presented before the holiday court on Sunday.

Investigators revealed that Mehta misappropriated Rs 70 crore through Paun, with the embezzlement spanning from 2019 to January 2025. Police found transaction records showing Rs 1.75 crore being moved to Paun between May and December 2024 and another Rs 50 lakh transferred in January 2025.

The police also mentioned that the suspects were being evasive in their answers, prompting further investigation into whether others may have been involved. “Mehta took the cash from offices in Prabhadevi and Goregaon. We need to question the accused further to identify any other individuals who might have helped in the misappropriation,” police told the court.

Paun’s defence team questioned the role of auditors, asking, “What were the auditors doing all these years?” They also argued that Paun had provided full details of the money he received from Mehta and was undergoing medical treatment for heart and liver conditions, requesting the court to grant him minimal police custody.

The court remanded both accused to police custody until February 21.

In his statement to the police, Ghosh explained that the bank’s corporate office is in Prabhadevi, where a safe in the accounts department stores cash. Another branch in Goregaon also has a cash vault. During a routine inspection by the Reserve Bank of India (RBI) on February 12, officers counted the cash in the Prabhadevi safe. Mehta, who managed the cash, was present during the inspection.

The RBI officials discovered that Rs 112 crore was missing from the Prabhadevi office safe, and an additional Rs 10 crore was missing from the Goregaon branch. As the RBI officials investigated, Mehta allegedly admitted to taking the cash and passing it along to someone else.

Following his confession, Mehta took the RBI and bank officials to various locations, leading to the recovery of Rs 50 lakh. He promised to return the rest of the stolen money. His confession was recorded on a mobile phone by an RBI officer, and he later provided a written statement.

At the RBI’s request, the matter was reported to the police, and the investigation was handed over to the EOW.