The Economic Offences Wing (EOW) of the Mumbai police has learned that wanted former chairman Hiren Bhanu of the New India Co-operative Bank and his wife, Gauri Bhanu, the acting chairperson and vice-chairperson of the bank, purchased multiple properties between 2019 and 2024. Officials suspect that these properties could be proceeds of crime, as the Rs 122 crore embezzlement at the bank occurred during this period and is currently under investigation by the EOW.
The EOW is exploring the possibility of utilising the newly added sections of the BNSS to seize properties belonging to the absconding couple, as the MPID Act—which empowers the police to seize property without court permission—cannot be applied in this case.
According to sources, the investigation has revealed that the couple, who fled the country just days before the scam came to light, purchased several properties in Mumbai and its outskirts. The EOW has been examining these properties and found that assets worth around Rs 10-12 crore were acquired by Hiren Bhanu between 2019 and 2024.
Customers at the New India Co-operative Bank’s Kandivli branch. File pic/Nimesh Dave
“This is the same period during which R122 crore in cash was siphoned off from the bank by the main accused, Hitesh Mehta, in connivance with the Bhanu couple. We believe these could be proceeds of crime and are exploring how these properties can be seized since the MPID Act is not applicable in this case. We are also examining whether MPID can be added to the FIR. Otherwise, we will use the new section of the BNSS, which empowers the police to seize property with the court’s permission,” an EOW officer said.
The EOW is considering invoking Section 107 (attachment, forfeiture, or restoration of property) of the BNSS, a newly added provision that empowers the police to seize property when special acts like the MPID Act cannot be applied to the FIR. The Act states, “Where a police officer conducting an investigation has reason to believe that any property has been derived or obtained, directly or indirectly, as a result of criminal activity or the commission of an offence, they may, with the approval of the superintendent of police or commissioner of police, make an application to the court or the magistrate exercising jurisdiction to take cognisance of the offense, commit for trial, or try the case, for the attachment of such property.”
The EOW is planning to move an application before the court to invoke Section 107 of the BNSS to seize the property as proceeds of crime, after thoroughly examining all legal aspects.
Meanwhile, the EOW has conducted a polygraph test, also known as a lie detector test, on Hitesh Mehta, the former general manager of the bank and the main accused in the case. Sources said Mehta gave contradictory statements during the test regarding the R122 crore siphoned off from the bank.
So far, the EOW has arrested four, including former CEO Abhimanyu Bhoan, SRA developer Dharmesh Paun, and Manohar Arunachalam, son of the absconding Unnathan Arunachalam—both of whom are beneficiaries in the case. The Bhanu couple has also been named accused but fled the country days before the FIR was registered.
Initial information received by the EOW indicates that Hiren Bhanu left for Abu Dhabi and has surrendered his Indian nationality, acquiring British citizenship. Gauri Bhanu left for Thailand just two days before the FIR was filed. The EOW has issued a look-out circular against the couple, followed by a blue-corner notice. If they do not return to India, the EOW will also issue a red-corner notice against them after the charge sheet is filed.
Rs 122cr
Value of the scam
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