New India Co-operative Bank scam: Wanted accused Kapil Dedhia arrested, probe reveals ₹12 cr credited to his account

The Economic Offences Wing (EOW) of Mumbai police arrested the wanted accused Kapil Dedhia in connection with the New India Cooperative Bank's ₹122 crore embezzlement case.

Civil contractor Kapil Dedhia was arrested from Vadodara on Friday as part of a coordinated operation and was brought to Mumbai on Saturday.

“He was formally arrested at 11.30 a.m. and presented before the court, which remanded him to police custody till March 19, 2025,” said EOW.

Investigations revealed that ₹12 crore was credited to his account, which is part of the misappropriated funds siphoned from the bank.

Dedhia also received money from Unnathan Arunachalam, another wanted accused in the case, and prime accused Hitesh Mehta, the bank’s former general manager and head of accounts, reported PTI.

Mumbai Police said that further investigation is underway to trace the entire fund flow and identify other individuals involved in the financial irregularities.

The embezzlement came to light after the Reserve Bank of India inspected the lender's cash safes, following which a case was registered at Dadar police station.

The probe was then transferred to the EOW.

The EOW has so far arrested main accused Hitesh Mehta, the bank's former CEO Abhimanyu Bhoan and real estate developer Dharmesh Paun.

Earlier this week, Mumbai police conducted a polygraph test on Hitesh Mehta.

A team of the Economic Offences Wing (EOW) of the police will also be visiting the Reserve Bank of India (RBI) and meet senior officers soon to collect information, an official said.

The EOW team has launched a hunt against the four wanted accused. Among them, former chairman of the bank, Hiren Bhanu, and his wife Gauri Bhanu, have already fled out of the country in February, reported PTI quoting official. Hiten Bhanu escaped on January 26.

On February 28, EOW arrested Manohar Arunachalam (33), the son of a absconding businessman Unnathan Arunachalam.