Mumbai Police have accused Hitesh Pravinchand Mehta, the former General Manager of New India Co-operative Bank Limited, of embezzling ₹122 crore from the bank. The alleged fraud has raised significant concerns about the bank’s financial stability and the integrity of its management.
The investigation started after a complaint was filed by the Chief Accounts Officer of the bank at Dadar police station. The alleged fraud took place between 2020 and 2025. Hitesh misused his position to commit fraud at the Dadar and Goregaon branches of the bank. Authorities are reviewing financial records to determine the extent of the fraud. The police suspect that Mehta, along with others, may be involved in the scam.
The Reserve Bank of India (RBI) has appointed Shreekant, former SBI Chief General Manager, as the administrator to oversee the bank, with a committee of advisors to assist him. The RBI also imposed restrictions on the bank’s operations.
• RBI Restrictions:
oBarred the bank from issuing new loans.
oRestricted accepting fresh deposits.
oSuspended withdrawals for six months.
• Reason: RBI imposed these measures due to supervisory concerns and liquidity issues at the bank.
New India Co-operative Bank has been grappling with significant financial losses in recent years.
• Loss for FY 2024: The bank reported a loss of ₹227.8 million for the financial year ending March 2024.
• Loss for FY 2023: The bank experienced a loss of ₹307.5 million in the previous financial year.
The case has been transferred to the Mumbai Police’s Economic Offences Wing (EOW) for further investigation.