New India Cooperative Bank GM Detained By EOW In Rs 122 Crore Fraud Case (Ld)

2025-02-15 05:15:17

(MENAFN- IANS) Mumbai, Feb 15 (IANS) The Economic Offences Wing (EOW) of Mumbai Police has detained Hitesh Mehta, General Manager of New India Cooperative Bank, in connection with a Rs 122 crore financial fraud case.

On Saturday, EOW officials conducted a raid at Mehta's residence in Dahisar, Mumbai, at Aryavrat Society, NL Complex. Following the search at his 14th floor apartment, Mehta was taken into custody and brought to the EOW office for interrogation.

An FIR was earlier registered at Dadar Police Station against Mehta, accusing him of financial embezzlement. The complaint was lodged by Devarshi Shishir Kumar Ghosh, 48, the Acting Chief Executive Officer (CEO) of the bank. Alongside Mehta, several of his colleagues, including senior officials from the bank's accounts department, have been named in the case.

According to the FIR, the accused allegedly misused their official positions, conspired, and siphoned off Rs 122 crore from the bank. The investigation is now being handled by the EOW under the supervision of DCP Mangesh Shinde, who oversees financial crimes related to the banking sector.

The fraud is said to have taken place between 2020 and 2025.

Amid financial irregularities, the Reserve Bank of India (RBI) on Thursday imposed restrictions on New India Cooperative Bank due to liquidity concerns. Effective from February 13, 2025, the bank has been barred from allowing withdrawals, though customers can adjust loans against deposits. However, essential operational expenses, including salaries, rent, and utility bills, will still be permitted.

The RBI's action has sparked panic among depositors, who rushed to bank branches seeking withdrawals, only to be turned away. The central bank has stated that these restrictions are necessary to safeguard customers' interests. Additionally, the bank has been prohibited from selling any of its assets during the six-month restriction period.

The New India Co-operative Bank has been struggling with financial losses in the last few years.

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