FIR Registered Against GM of New India Cooperative Bank for Rs 122 Crore Fraud
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Synopsis
An FIR has been filed against the General Manager of New India Cooperative Bank for allegedly embezzling Rs 122 crore. The complaint was made by the bank's acting CEO after the RBI imposed operational restrictions due to liquidity issues, raising concerns about the bank's financial stability.
Key Takeaways
- FIR registered against New India Cooperative Bank's GM.
- Allegations of embezzlement totaling Rs 122 crore.
- Investigation handled by Economic Offences Wing (EOW).
- RBI restrictions aimed at protecting customer interests.
- Panic among depositors due to withdrawal restrictions.
Mumbai, Feb 15 (NationPress) Just two days after the Reserve Bank of India (RBI) placed restrictions on New India Cooperative Bank's operations, a First Information Report (FIR) has been filed at the Dadar Police Station in Mumbai, accusing the bank of financial fraud.
The complaint was initiated under relevant sections of the Bharatiya Nyay Sanhita (BNS) by Devarshi Shishir Kumar Ghosh, aged 48, who is the Acting Chief Executive Officer (CEO) of the bank.
The main suspect in this case is Hitesh Mehta, the General Manager of the bank. The FIR also implicates several of his associates, including individuals in the roles of General Manager and Head of Accounts.
As per the FIR, the accused reportedly abused their official positions, conspired, and embezzled Rs 122 crore from the bank.
The investigation has been assigned to the Economic Offences Wing (EOW) of the Mumbai Police, under the supervision of DCP Mangesh Shinde, who specializes in banking-related financial crimes.
The RBI imposed restrictions on the bank owing to supervisory concerns and liquidity issues. This directive, effective from Thursday, prevents the bank from facilitating withdrawals but allows for loan adjustments against deposits. However, essential expenses like employee salaries, rent, and electricity bills remain payable.
The Reserve Bank has indicated that this bank's financial health is concerning.
Consequently, the RBI is questioning the bank's liquidity. Therefore, customers have been restricted from withdrawing funds from their savings, current, or any other accounts.
The Reserve Bank stated that these restrictions are intended to protect customer interests.
Moreover, the bank will not possess the authority to liquidate any of its assets. These restrictions will be in place for a duration of six months, commencing from February 13, 2025.
This situation has incited panic among depositors, who rushed to their respective bank branches only to discover that they could not withdraw their funds.
