Mumbai Scandal: Ex-Bank Chairman and Wife Declared Offenders

Hiren Bhanu, New India Cooperative Bank's ex-chairman, and his wife Gauri have been declared proclaimed offenders in a Rs 122 crore fraud. The couple fled before the case emerged in February. Eight arrests have been made, and a forensic audit is underway to uncover NPA loan mismanagement.

A Mumbai court has declared former New India Cooperative Bank chairman Hiren Bhanu and his wife, Gauri Bhanu, as proclaimed offenders in a Rs 122 crore embezzlement case. This declaration follows the couple's escape from India shortly before the fraud was discovered in February, according to a police official's statement on Thursday.

The Economic Offences Wing (EOW) has made eight arrests, including the bank's ex-General Manager Hitesh Mehta and former CEO Abhimanyu Bhoan, who are implicated in the case. Despite non-bailable warrants issued earlier, the Bhanus managed to flee separately, prompting the issuance of a Blue Corner Notice to help locate them.

The investigation has uncovered that several Non-Performing Asset (NPA) loans were sold to Omkara Assets Reconstruction Company at values significantly lower than their initial amounts. The EOW plans to conduct a forensic audit and interrogate ARC officials to determine the discrepancies in financial transactions.

(With inputs from agencies.)