Hitesh Mehta, GM of New India Cooperative Bank, Arrested in Rs 122 Crore Fraud Case
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Synopsis
On February 15, 2025, Hitesh Mehta, the General Manager of New India Cooperative Bank, was arrested by the EOW in connection with a Rs 122 crore fraud case. The arrest followed extensive questioning after the RBI imposed restrictions on the bank due to liquidity issues.
Key Takeaways
- Hitesh Mehta, GM of New India Cooperative Bank, arrested.
- Involved in a Rs 122 crore financial fraud case.
- Arrest followed several hours of interrogation.
- EOW seeks custody to trace embezzled funds.
- RBI imposed restrictions due to liquidity concerns.
Mumbai, Feb 15 (NationPress) The Economic Offences Wing (EOW) of the Mumbai Police took significant action on Saturday by apprehending Hitesh Mehta, the General Manager of New India Cooperative Bank, linked to a staggering Rs 122 crore financial fraud case. This arrest followed extensive questioning.
This incident represents the initial substantial measure taken after the Reserve Bank of India (RBI) imposed restrictions on the bank.
Mehta is set to appear in court on Sunday, where the EOW will request his custody to track the flow of embezzled funds and determine how the money was misappropriated. His associates are also under scrutiny from the EOW.
Earlier, on the same day, EOW officials conducted a raid at Mehta's residence located at Aryavart Society, NL Complex, Dahisar. Following a search of his apartment on the 14th floor, he was taken into custody and brought to the EOW office for further questioning.
An FIR was previously filed at Dadar Police Station based on a complaint submitted by Devarshi Shishir Kumar Ghosh, the bank’s Acting Chief Executive Officer (CEO). The FIR accuses Mehta and several senior officials from the bank’s accounts department of financial embezzlement.
The complaint alleges that the accused misused their positions, conspired, and unlawfully siphoned off Rs 122 crore from the bank. The investigation is being overseen by DCP Mangesh Shinde, who is responsible for financial crimes in the banking sector.
The fraudulent activities are believed to have occurred between 2020 and 2025.
In light of these financial irregularities, the RBI imposed restrictions on New India Cooperative Bank on Thursday due to liquidity concerns. Effective from February 13, 2025, the bank has been prohibited from facilitating withdrawals, although customers can adjust loans against their deposits. Nonetheless, essential operational expenses like salaries, rent, and utility payments are still permitted.
The RBI's actions have incited panic among depositors, many of whom flocked to bank branches to make withdrawals, only to be denied. The central bank asserts that these restrictions are vital to safeguard customers' interests. Furthermore, the bank is barred from selling any assets during the six-month restriction period.
New India Cooperative Bank has been facing financial challenges in recent years.
