New India Co-op Bank Scam: 8th Accused Promised 50% Interest on Stolen Funds

In a startling revelation that has gripped Mumbai’s financial and legal circles, the Economic Offences Wing (EOW) is investigating a complex embezzlement case involving the New India Co-operative Bank. 

The case revolves around the alleged misappropriation of ₹122 crore from the bank’s vaults and a series of fraudulent investments that followed. The latest arrest has further unravelled the intricate web of deception.

The Prime Accused and the Missing ₹122 Crore

At the centre of this scandal is Hitesh Mehta, the former general manager of the New India Co-operative Bank. According to the EOW, Mehta misappropriated ₹122 crore from the bank’s vaults. 

This money was then distributed among other accused individuals under the pretext of investment opportunities promising unusually high returns, as per news reports.

Arrest of the 8th Accused

The eighth arrest in this high-profile case is that of 45-year-old Rajiv Ranjan Pandey. He was apprehended by Mumbai police from Bokaro, Jharkhand, and presented before the court, which remanded him to police custody until 28 March. 

The investigators allege that Pandey received ₹15 crore from another accused, Unnathan Arunachalam, as per news reports.

The Temptation of ‘CSR Investments’

The EOW has revealed that Pandey, along with three associates, persuaded Arunachalam to invest ₹15 crore in businesses purportedly aligned with Corporate Social Responsibility (CSR) initiatives. They allegedly offered a staggering 50% interest on the invested amount, a promise that raised further red flags.

The Chain of Transactions

As per EOW officials, Arunachalam had received ₹40 crore from Hitesh Mehta and subsequently transferred ₹15 crore to Pandey. 

This transfer was made under the belief that the money would be invested in legitimate ventures yielding high returns. The remaining individuals involved in the scheme are yet to be identified.

Ongoing Investigation

The EOW is currently tracing the whereabouts of the three unnamed associates of Pandey who played a role in the fraudulent operation. Authorities are also scrutinising what Pandey did with the money once it was transferred to him. This line of enquiry is crucial to determining the final destination of the embezzled funds.

Conclusion

This case serves as a stark reminder of the vulnerabilities in the banking sector and the lengths to which individuals may go to exploit them. While the investigation continues, it underscores the importance of regulatory vigilance and the need for thorough internal controls within financial institutions.

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