Mumbai police’s EOW arrests developer who assisted bank official in siphoning Rs 122 crore

Claiming that Mehta is the mastermind in the case, as he misused his position to embezzle the funds, police presented him and his accomplice Paun before the holiday court on Sunday.

Police informed the court that the role of both Mehta and Paun has been established in the crime, with the mastermind misappropriating Rs 70 crore through Paun. The former general manager, who had been employed with the bank since 1988, embezzled funds between 2019 and January 2025.

“We have found the transaction record of Rs 1.75 crore that was embezzled by Mehta and handed over to Paun between May and December 2024 and another transfer record of Rs 50 lakh that was stolen in January this year,” an officer said.

Police further claimed that the arrested accused are providing evasive answers and that it is necessary to investigate whether more people are involved.

“The accused (Mehta) stole the cash from offices located at Prabhadevi and Goregaon, so it is necessary to investigate with the accused and identify those who actively helped them in misappropriating the cash from these two offices,” police told the court.

Refuting their claims, the defence lawyers representing Paun raised questions about the auditors’ role in the firm. One of the lawyers said, “What were the auditors doing all these years?”

“Police have raised allegations that Paun is the receiver of certain profits. He has disclosed all the details of the amount he received from the main accused and is undergoing heart and liver treatment. Please grant him minimum police custody,” the defence further added.

The court then remanded the two accused in police custody until February 21.

How the crime came to light

In his statement to police, Ghosh said that the bank’s corporate office is located in Prabhadevi, where they have an accounts department safe. The bank also has a branch in Goregaon, with a cash cell.

“Regular inspections are conducted at our bank by officers from the Reserve Bank of India. During one such inspection at our Prabhadevi office on February 12, the RBI asked the senior officers, including those from the Kandivali branch, to be present at the bank. We informed everyone accordingly. Simultaneously, some officers from the RBI also went to the Goregaon branch,” the complainant’s statement read.

During the inspection, the RBI officials took the keys to the safe and started checking it by counting the cash inside. While other senior officials from the bank were present, Mehta, who was responsible for handling all the cash, was also in the office.

“After counting the cash, the RBI officials informed the bank that Rs 112 crore (in cash) was missing from the Prabhadevi office safe, compared to the record maintained in their register. Subsequently, they were informed that another Rs 10 crore (cash) from the Goregaon office safe was also missing,” one of the investigating officers involved in the probe said.

The RBI officers then inquired with the senior bank officials. While they were trying to understand how the money went missing, Mehta allegedly approached them and confessed to the crime.

“Mehta informed that he had taken the cash and gave it to someone, and that person had taken the cash and given it to someone else,” the complainant told the police.

The former general manager then took the RBI and bank officials to different locations, after which Rs 50 lakh was recovered. Mehta further promised that he would recover the remaining amount and hand it over to the bank.

“Mehta’s version was recorded on a mobile phone by an RBI officer. He even submitted a written statement regarding the same to them,” an officer said.

Later, on the RBI’s instruction, the bank officials reported the matter to the police, following which the case was registered at Shivaji Park police station, and the specialised EOW was handed over the investigation.