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Fraud

Former CEO of New India Co-operative Bank Granted Pre-Arrest Bail in Cheating Case

Strategic Insights

— 1 min read

A Mumbai court granted pre-arrest bail to Abhimany Bhoan, the former CEO of New India Co-operative Bank Ltd, in a cheating and criminal breach of trust case. The additional sessions judge, NG Shukla, allowed Bhoan's plea for bail, citing a lack of prima facie evidence of his involvement in the alleged cheating and breach of trust. The prosecution alleges that Bhoan, along with the bank's late chairman and vice-chairman, accepted a one-time settlement of Rs61.34 crore from Percept Group of Companies, resulting in a wrongful loss of Rs18.56 crore for the bank.

Key Takeaways:

  • Abhimany Bhoan, former CEO of New India Co-operative Bank Ltd, was granted pre-arrest bail in a cheating and criminal breach of trust case.
  • The additional sessions judge, NG Shukla, allowed Bhoan's plea for bail, citing a lack of prima facie evidence of his involvement in the alleged cheating and breach of trust.
  • The prosecution alleges that Bhoan, along with the bank's late chairman and vice-chairman, accepted a one-time settlement of Rs61.34 crore from Percept Group of Companies, resulting in a wrongful loss of Rs18.56 crore for the bank.
  • Bhoan's advocate, Wesley Moneza, contended that the accused had no role in accepting the OTS proposal, as it was rejected by the board of directors before his appointment as CEO in 2019.
  • The OTS in contention was accepted on October 19, 2023, as per the RBI guidelines issued on June 8, 2023.
  • The court noted that the investigating officer had not sought Bhoan's custodial interrogation, despite him being in judicial custody in another crime.
  • The judge held that prima facie, there is no material showing role of applicant in taking decision of according approval to said proposal.

Statistics:

  • Rs61.34 crore: The amount of one-time settlement accepted by the bank from Percept Group of Companies.
  • Rs79.90 crore: The outstanding loan amount against which the OTS was accepted.
  • Rs18.56 crore: The alleged wrongful loss suffered by the bank due to the OTS proposal.
  • Rs6.37 crore: The amount received by Bhoan and co-accused in their bank accounts from the company in exchange for accepting the OTS proposal.

Sources:

  • [FPJ News Service, Mumbai: Additional Sessions Judge Grants Bail to Former CEO of New India Co-operative Bank, Contify.com]
  • [Copyright 2025 Indian National Press (Bombay) Pvt. Ltd., distributed by Contify.com]

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