India, Feb. 17 -- Mumbai police's Economic Offences Wing (EOW) on Sunday arrested Dharmesh Paun, a private developer from Kandivali, in connection with the Rs.122-crore New India Cooperative Bank scam. Paun allegedly received Rs.70 crore from the bank's general manager and account head Hitesh Mehta, who was arrested on Saturday, for investment purposes, said police.

Both Paun and Mehta were produced at the Esplanade court on Sunday and remanded in police custody till February 21.

The alleged scam came to light during the audit at the bank's headquarters in Prabhadevi on Wednesday, when RBI officials found Rs.122 crore missing from the vault. Later that evening, Mehta, an employee of the bank since 1988 due to retire next year, met RBI o...