MUMBAI: A staggering Rs122 crore cash discrepancy has been uncovered at New India Cooperative Bank’s Prabhadevi branch, far exceeding its vault capacity of Rs10 crore, according to Mumbai Police’s Economic Offences Wing (EOW).
The revelation came during an RBI inspection on February 11, which found the bank’s records showing Rs122.028 crore in cash at the branch, while only ₹60 lakh was physically present.
The EOW, investigating the massive embezzlement, has so far arrested three individuals, including two former top executives of New India Cooperative Bank. The agency is now questioning auditors who reviewed the bank’s financials between 2019 and 2024, suspecting lapses or complicity in the fraud.
Missing cash and suspicious accounting
The balance sheet of New India Cooperative Bank showed Rs133.41 crore in cash across its Prabhadevi and Goregaon branches. The Goregaon branch, with a Rs10 crore vault capacity, had Rs10.53 crore in cash during the inspection. Auditors from multiple firms, responsible for verifying cash reserves, failed to flag the discrepancies.
EOW has summoned representatives from half a dozen audit firms that conducted statutory, concurrent, or internal audits of the bank. Among them, Sanjay Rane Associates is under particular scrutiny, with partner Abhijeet Deshmukh being questioned for the last four days. Another partner, Sanjay Rane, has now been called in for interrogation.
Former bank CEO Abhimanyu Bhoan, one of the three arrested, had signed off on all balance sheets and audit reports, raising further suspicion. Authorities are considering a forensic audit to trace the Rs122 crore misappropriation.
With auditors, executives, and financial watchdogs under scrutiny, the case raises serious concerns about oversight failures and regulatory lapses in cooperative banking.
