A Mumbai court has sent New India Cooperative Bank general manager Hitesh Mehta and co-accused Dharmesh Paun to police custody till February 21, 2025. The two men are accused of embezzling Rs 122 crore from the bank's Prabhadevi and Goregaon branches. The Economic Offenses Wing (EOW) of Mumbai Police produced Mehta and Paun before the holiday court on February 16, after which the court granted police custody to both of them to further investigate the case.
Mehta was arrested after a raid at his residence on February 15. Before being taken into custody, he was taken to the Mumbai Economic Offences Wing office in South Mumbai and questioned extensively. The matter came to light when the CEO of New India Cooperative Bank filed a complaint in this regard on February 14.
The complaint alleges that Mehta and his associates conspired to embezzle Rs 122 crore from the bank's Prabhadevi and Goregaon branches during 2020 to 2025. The accused have been booked under sections 316 (5) and 61 (2) of the Indian Code of Criminal Procedure. In view of this scam, the Reserve Bank has taken an important decision to protect the stability of the bank and the interests of the depositors. The Reserve Bank has relieved the bank's board for one year and appointed an administrator for its operations. Apart from this, the central bank has also imposed restrictions on fund withdrawal citing the interests of the depositors.
Many customers of the bank are quite worried due to the restrictions imposed by the Reserve Bank. Many customers are visiting various branches of the bank and seeking clarification regarding the safety and availability of their funds
