Kirit Somaiya Requests ED Investigation into New India Cooperative Bank Fraud
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Synopsis
On February 20, BJP leader Kirit Somaiya urged the ED to investigate the New India Cooperative Bank fraud. The RBI's restrictions and ongoing police inquiries reveal serious financial concerns affecting over one lakh depositors.
Key Takeaways
- Kirit Somaiya calls for ED probe into New India Cooperative Bank fraud.
- RBI restricts bank activities due to financial instability.
- Police investigation uncovers alleged Rs 122 crore fraud.
- Over one lakh depositors are impacted.
- Serious allegations against bank management.
Mumbai, Feb 20 (NationPress) BJP leader and former MP Kirit Somaiya on Thursday called upon the Enforcement Directorate (ED) to conduct an investigation into the fraud case involving the New India Cooperative Bank.
In a correspondence sent to ED Director Rahul Navin, Somaiya stated, “The Reserve Bank of India (RBI) has issued a directive to New India Cooperative Bank Limited, Mumbai, prohibiting it from granting new loans, accepting additional deposits, or permitting withdrawals for the upcoming six months. This action was taken due to apprehensions regarding the bank's financial stability and liquidity.”
He also pointed out that the Economic Offence Wing of the Mumbai Police has already started an inquiry and uncovered a fraud amounting to Rs 122 crore involving the bank's General Manager.
“It is believed that numerous crores in fraudulent transactions have occurred. It is possible that funds have been transferred out of the country. Over one lakh depositors are affected. I urge you to initiate an investigation into the New India Cooperative Bank Fraud,” he remarked.
Somaiya's request for an ED investigation followed a court's decision to remand Hitesh Mehta, the general manager and head of accounts of the New India Cooperative Bank, into police custody until February 21 regarding allegations of misappropriating Rs 122 crore from the bank. The EOW had presented Mehta and Dharmesh Paun, another suspect in the case, to the court. Devarshi Ghosh, the bank's acting CEO, had filed a complaint against Mehta and others at the Dadar Police Station the previous Friday, citing claims of misappropriation of the bank's funds.
Ghosh further alleged that Mehta and his associates plotted a conspiracy and accused them of misappropriating Rs 122 crore from the bank's Prabhadevi and Goregaon branches.
Subsequently, the police registered a case under sections 316 (5) (criminal breach of trust by public servants, bankers, and others in positions of trust) and 61(2) (criminal conspiracy) of the Bharatiya Nyay Sanhita.
The Reserve Bank of India (RBI) had placed restrictions on the New India Co-op Bank from issuing new loans, making investments, or accepting fresh deposits without prior authorization, effective from February 13. The bank has been instructed not to permit the withdrawal of any amounts from savings or current accounts or any other depositor accounts.
The RBI stated in a circular, “Effective from the close of business on February 13, 2025, the bank shall not, without prior written approval from the RBI, grant or renew any loans and advances, make any investments, incur any liabilities including borrowing of funds and acceptance of new deposits, disburse or commit to disburse any payments, enter into any arrangements or agreements, and sell, transfer or otherwise dispose of any of its properties or assets.”
