Bombay High Court Grants Bail to Former Bank CEO in Major Fraud Case
In a significant development, the Bombay High Court on Tuesday granted bail to Abhimanyu Bhoan, the 45-year-old former chief executive officer of the New India Co-operative Bank Ltd. This decision comes approximately one year after his arrest in connection with a massive Rs 122 crore cash shortfall and fraud case that has shaken the banking sector.
Court Cites Lack of Prima Facie Evidence
The High Court bench observed that there was no material on record to prima facie indicate the complicity of the accused in the alleged siphoning of funds from the bank. Justice, while delivering the order, specifically noted that the applicant had already suffered incarceration for about one year without substantial evidence directly linking him to the financial irregularities.
"There is no material placed on record to demonstrate that the siphoning of amounts by accused No 1, Hitesh Mehta, the General Manager of Accounts, was done under the supervision or direction of the applicant (Bhoan)," the court stated unequivocally in its detailed order.
Background of the Complex Fraud Case
The case originally came to light during a routine inspection by the Reserve Bank of India (RBI), which uncovered alleged financial irregularities at the bank's Prabhadevi and Goregaon branches between 2020 and 2025. The fraud was reportedly masterminded by Hitesh Mehta, the bank's General Manager of Accounting, who stands accused of siphoning approximately Rs 112 crore from the institution.
During his interrogation, Mehta made startling claims that he had shared Rs 1 crore with Bhoan and another Rs 41 crore with co-accused Dharmesh Paun. These allegations formed part of the prosecution's case against the former CEO.
Prosecution Arguments and Defense Counterpoints
The prosecution had pointed to several factors in their attempt to establish Bhoan's involvement:
- Mehta's statement alleging "suspicious conduct" by Bhoan
- Bhoan's visit to his bank where he reportedly removed certain documents from a locker
- The changing of his mobile phone around the time of the investigation
- Mehta's Brain Mapping Report that corroborated his police statement
- A confrontation panchanama indicating Rs 1 crore was handed over by Bhoan
However, the High Court noted that all these aspects are matters for trial and do not constitute prima facie evidence sufficient to deny bail after prolonged incarceration.
Senior counsel Shirish Gupte, appearing for Bhoan, presented a robust defense arguing that:
- These actions did not prove complicity in the embezzlement scheme
- Bhoan had no regular or day-to-day supervision over Mehta's activities
- The actual siphoning of funds was conducted by Mehta independently
- Bhoan cannot escape his obligations toward the bank by feigning ignorance
Previous Legal Proceedings and Bail Conditions
Bhoan's bail plea had been rejected by the sessions court in October last year, prompting his legal team, comprising advocates Wesley Menezes and Waqar Pathan, to approach the High Court. The former CEO was originally arrested on February 20, 2025, and has remained in custody since that time.
The High Court made it explicitly clear that its observations were prima facie and confined to the bail plea, and that the trial court should decide the case on its own merits without being influenced by these interim observations.
Stringent Bail Conditions Imposed
While granting bail, the court imposed several strict conditions on Bhoan's release:
- Execution of a Personal Recognizance (PR) bond of Rs 2 lakh with one or two local sureties
- Mandatory attendance at the concerned police station twice every month
- Prohibition from leaving the country without prior permission from the trial court
- Regular attendance at the trial court on each hearing date unless specifically exempted
The court issued a stern warning that "any infraction of the aforesaid conditions shall entail cancellation of bail," emphasizing the seriousness with which it views compliance with these requirements.
This case continues to highlight the challenges in prosecuting complex financial crimes within India's banking sector, particularly when allegations involve multiple layers of management and substantial sums of money. The final determination of guilt or innocence will now await the conclusion of the full trial proceedings.
