Mumbai Businessman Arrested in ₹36 Crore Bank Fraud Scheme

 Economic Offences Wing Nabs Bhavesh Shah for Alleged Role in Siphoning Funds from Labor Union

In a significant development, the Economic Offences Wing (EOW) of the Mumbai Police has arrested Bhavesh Shah, a businessman based in Malad, in connection with a massive ₹36 crore bank fraud. This case, initially registered in 2019, revolves around allegations that Shah aided a nationalized bank manager in embezzling funds from the Mathadi Kamagar Union.

The complaint was filed by Balraj Deshmukh, chairman of the Iron and Steel Kamgaar Kalyan Mandal, a union representing Mathadi workers. According to Deshmukh, Nikhil Roy, the Byculla bank branch manager, had approached the union with a tempting offer of higher interest rates for fixed deposits.

 The Scheme Unfolds

Deshmukh reported that the union was persuaded to invest ₹45 crore in fixed deposits at Roy’s bank, which were opened in December 2018 and February 2019. Union representatives regularly visited the branch to monitor their investments and received consistent assurances that everything was in order. However, it was later revealed that Roy, with the assistance of 14 newly opened accounts, allegedly transferred ₹36 crore from the union’s funds into various branch accounts before withdrawing the money.

 Arrests and Allegations

In total, eleven individuals, including Roy, have been arrested in connection with the case. The latest arrest of Bhavesh Shah sheds light on his alleged involvement in the scheme. Police officials noted that Shah not only facilitated the transfer of funds but also purchased 9 kilograms of gold worth ₹5 crore, which he reportedly handed over to Roy. Furthermore, it is alleged that he transferred ₹2.5 crore to his own bank accounts.

As the investigation continues, the EOW is delving deeper into the financial dealings and connections among those involved, aiming to recover the embezzled funds and hold all responsible parties accountable.