General Manager of New India Cooperative Bank Arrested in ₹122 Crore Fraud Case
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Synopsis
The Economic Offences Wing has detained New India Cooperative Bank's GM, Hitesh Mehta, in a ₹122 crore fraud case. The investigation reveals misuse of official positions and financial embezzlement involving several senior officials.
Key Takeaways
- Hitesh Mehta detained by EOW in ₹122 crore fraud.
- Raid conducted at Mehta's residence in Dahisar.
- Investigation supervised by DCP Mangesh Shinde.
- RBI imposed restrictions on bank due to liquidity issues.
- Depositors alarmed by withdrawal prohibitions.
Mumbai, February 15 (NationPress) The Economic Offences Wing (EOW) of Mumbai Police has arrested Hitesh Mehta, the General Manager of New India Cooperative Bank, in relation to a massive ₹122 crore financial fraud case.
On Saturday, EOW personnel conducted a search at Mehta's residence located in Dahisar, Mumbai, within the Aryavrat Society, NL Complex. Following the raid on his 14th-floor apartment, Mehta was taken into custody and transported to the EOW office for questioning.
An FIR had previously been filed at Dadar Police Station against Mehta, accusing him of financial embezzlement. The complaint was submitted by Devarshi Shishir Kumar Ghosh, 48, who serves as the Acting Chief Executive Officer (CEO) of the bank. Alongside Mehta, several colleagues, including senior officials from the bank's accounts department, have been implicated in the case.
As per the FIR, the accused reportedly abused their official roles, engaged in conspiracy, and misappropriated ₹122 crore from the bank. The investigation is currently being supervised by DCP Mangesh Shinde, who specializes in financial crimes within the banking sector.
The fraudulent activities are believed to have occurred between 2020 and 2025.
In light of these financial discrepancies, the Reserve Bank of India (RBI) imposed restrictions on New India Cooperative Bank due to liquidity issues on Thursday. Effective from February 13, 2025, the bank has been prohibited from permitting withdrawals, although customers may adjust loans against deposits. However, crucial operational expenditures like salaries, rent, and utility bills remain permitted.
The RBI's decision has caused alarm among depositors, who flocked to bank branches in hopes of making withdrawals, only to be denied. The central bank has clarified that these measures are essential to protect customers' interests. Furthermore, the bank is barred from selling any of its assets during this six-month restriction period.
In recent years, New India Co-operative Bank has been facing significant financial losses.
