General Manager of New India Cooperative Bank Remanded to Police Custody Until February 21

Synopsis
Key Takeaways
- Hitesh Mehta arrested for Rs 122 crore fraud.
- Custody extended until February 21 for questioning.
- Allegations involve misuse of position during the pandemic.
- RBI imposed restrictions on New India Cooperative Bank.
- Panic among depositors after restriction announcement.
Mumbai, Feb 16 (NationPress) Hitesh Mehta, the General Manager of New India Cooperative Bank, was arrested in connection with a Rs 122 crore financial fraud case and was subsequently remanded to the custody of the Economic Offences Wing (EOW) of the Mumbai Police until February 21 for extensive questioning, tracking the money trail, and gathering evidence.
Mehta's arrest occurred on Saturday after several hours of interrogation.
Authorities allege that the bank scam originated during the pandemic, where Mehta purportedly embezzled Rs 112 crore from the Prabhadevi branch, followed by an unlawful withdrawal of Rs 10 crore from the Goregaon branch.
On Saturday, EOW officials conducted a raid at Mehta's residence located at Aryavart Society, NL Complex, Dahisar.
Following a thorough search of his 14th-floor apartment, he was taken to the EOW office for further questioning.
An FIR was previously filed at Dadar police station based on a complaint from Devarshi Shishir Kumar Ghosh, the bank's Acting Chief Executive Officer (CEO). The FIR implicates Mehta and numerous senior officials from the bank's accounts department in financial misappropriation.
The complaint indicates that the suspects allegedly abused their positions, conspired, and misappropriated Rs 122 crore from the bank. The case is under the investigation of Deputy Commissioner of Police Mangesh Shinde, who supervises financial crimes within the banking sector.
In light of these financial irregularities, the Reserve Bank of India (RBI) imposed restrictions on New India Cooperative Bank due to liquidity issues. As of February 13, 2025, the bank has been prohibited from permitting withdrawals, although customers can adjust loans against their deposits. Nevertheless, essential operational expenses like salaries, rent, and utility bills are still permissible.
This action by the RBI incited panic among depositors, prompting many to flock to bank branches in search of withdrawals, only to be denied.
The central bank asserted that these restrictions were crucial for safeguarding customers' interests.
Furthermore, the bank has been barred from liquidating any assets throughout the six-month restriction period.
New India Cooperative Bank has faced ongoing financial challenges in recent years.