Mumbai, Oct 14 (IANS) The Enforcement Directorate (ED) has filed a charge sheet against former New India Co-operative Bank Limited (NICBL) General Manager Hitesh Pravinchandra Mehta and seven others in connection with an alleged Rs 122 crore bank fraud, the agency said.
The charge sheet was filed under the Prevention of Money Laundering Act (PMLA) before a Special PMLA Court here. The court has ordered the issuance of pre-cognisance notices to the accused.
The ED initiated its money-laundering probe on the basis of an FIR registered by the Economic Offences Wing (EOW) of the Mumbai Police over embezzlement of around Rs 122 crore from the bank.
According to the ED, Mehta, a former General Manager and Head of Accounts at NICBL, played a key role in siphoning off funds by allegedly manipulating accounting systems and creating false records of cash transfers between bank branches.
The agency said its investigation indicated that the activities were also carried out at the behest of another accused, a former Chairman and Vice-Chairman of the bank who exercised control over its operations for several years, directly as well as through associates and family members.
The ED alleged that proceeds of crime were transferred to various individuals and entities, including the main accused. Around Rs 26 crore to Rs 30 crore was allegedly transferred to the former/Acting Chairman and Vice-Chairman of the bank during the relevant period.
The investigation also found that Hiren Bhanu allegedly acted in connivance with some NICBL borrowers and acquired a business entity outside India without paying any sale consideration.
Funds were subsequently transferred to accounts of such foreign companies through some Indian borrowers who had received substantial loans from the bank.
Earlier, the ED provisionally attached 33 movable and immovable properties worth approximately Rs 16.95 crore, including fixed deposits, bank balances, flats, commercial premises and agricultural land. The attachment was subsequently confirmed by the PMLA Adjudicating Authority.
The EOW has also filed charge sheets in the case. Non-bailable warrants and proclamation proceedings have been issued against Bhanu, who, according to the ED, is currently outside India and has not cooperated with the investigation.
Further investigation is underway to trace funds allegedly diverted from the bank to individuals and entities.
–IANS
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