Mumbai police arrested Hitesh Mehta, the General Manager of New India Cooperative Bank, for allegedly misappropriating ₹122 crore. The arrest follows an investigation by the Economic Offences Wing (EOW) after a complaint by the bank’s acting CEO, Devarshi Ghosh.
The fraud came to light after the Reserve Bank of India (RBI) superseded the bank’s board due to liquidity issues. The RBI has appointed a new administrator for 12 months and restricted withdrawals to protect depositors.
As per reports, Mehta and his associates siphoned off ₹112 crore from the Prabhadevi branch and ₹10 crore from the Goregaon branch. The misappropriation allegedly started during the COVID-19 pandemic. The police have registered a case under the Bharatiya Nyaya Sanhita (BNS) sections 316(5) and 61(2) for criminal breach of trust and conspiracy.
Founded in 1968, the New India Cooperative Bank has faced financial struggles, posting losses for two years. The bank’s liquidity crisis has left customers worried, with many gathering at branches to access their money. However, under the deposit insurance scheme, customers can claim up to ₹5 lakh.
The case has raised serious concerns about banking governance and depositor security. Authorities are continuing the investigation, and further arrests may follow.
