MUMBAI: The Economic Offences Wing (EOW) of Mumbai Police on Sunday arrested builder Dharmesh Jayantilal Paun in connection with the Rs 122 crore embezzlement case involving New India Citizen Cooperative Bank.
On Saturday, police had arrested the general manager of the bank, Hitesh Mehta, for misappropriation of funds.
According to officials, Mehta and an unidentified accomplice allegedly conspired to siphon off the massive sum between May 2019 and January 2025.
A complaint was filed by Devarshi Shishirkumar Ghosh, the acting chief accounting officer of the bank, following which an FIR was registered, and an investigation was launched.
Mehta is accused of misusing his authority to commit criminal breach of trust and embezzlement, while Paun is alleged to have received Rs 70 crore from the fraudulently acquired funds. Preliminary investigations also found evidence of Paun receiving Rs 1.75 crore between May and December 2024 and an additional Rs 50 lakh in January 2025 from Mehta.
Both accused underwent medical examinations and were produced before the holiday court, which remanded them to police custody till February 21.
Police have sought maximum remand to probe the whereabouts of the siphoned funds, identify possible accomplices within the bank, and uncover additional conspirators.
Officials suspect that cash withdrawals from the Prabhadevi and Goregaon branches may have involved further collusion.
