Mumbai: The Economic Offences Wing (EOW) of Mumbai Police detained Hitesh Mehta, the General Manager of New India Cooperative Bank, on Saturday. Earlier in the day, Mehta was booked for allegedly embezzling Rs 122 crore from the bank. His arrest comes just two days after the Reserve Bank of India (RBI) imposed strict restrictions on the bank’s operations due to financial irregularities and liquidity concerns.
Mehta Booked For ₹122 Crore Embezzlement
The case was registered at Dadar Police Station following a complaint filed by Devarshi Shishir Kumar Ghosh, the bank’s Acting CEO. The FIR, lodged under relevant sections of the Bharatiya Nyay Sanhita (BNS), names Mehta as the prime accused, along with several of his colleagues, including officials serving as General Manager and Head of Accounts.
The accused are alleged to have misused their positions, conspired and siphoned off Rs 122 crore. Given the scale of the financial crime, the investigation was handed over to the EOW and will be supervised by DCP Mangesh Shinde, who handles banking-related offenses.
RBI Restrictions On Transactions
The RBI, after noticing severe financial distress within the bank, imposed restrictions to safeguard customer interests. These restrictions, effective from February 13, 2025, will remain in force for six months. During this period, customers are barred from withdrawing money from their savings, current, or any other accounts. However, certain payments such as employee salaries, rent, and electricity bills will still be allowed. Additionally, the bank is prohibited from selling any assets during this time. The RBI's intervention aims to assess whether the bank has sufficient funds and to prevent further financial instability.
The imposition of restrictions triggered panic among depositors, leading to chaotic scenes at various bank branches. Customers rushed to withdraw their funds but were met with refusal, heightening concerns about their savings. The situation underscores the growing scrutiny of cooperative banks and their financial health, with authorities now focusing on holding those responsible accountable.
