MUMBAI: A case of misappropriation of Rs 122 crore has been registered against Hitesh Mehta, the general manager and head of accounts of the New India Co-operative Bank.
The FIR was lodged at Dadar police station on Saturday, and the investigation has been transferred to the Economic Offences Wing (EOW).
The complaint was filed by Devarshi Shishir Kumar Ghosh (48), the acting Chief Executive Officer of the bank, stating that the alleged fraud took place before February 12 at the bank’s Prabhadevi branch on S V Nagvekar Marg.
While no arrests have been made so far, Mehta has been brought to the EOW headquarters at the police commissioner’s office for questioning.
A senior EOW officer said the probe is ongoing.
The accused and his accomplices, in their capacity as general manager and head accounts of the bank, committed criminal breach of trust and misappropriated the cash of the bank amounting to about Rs 122 crores kept in trust in the safe deposit box of Prabhadevi office and Goregaon office.
RBI imposes moratorium on New India Cooperative Bank over alleged fund misappropriation
Funds belonging to over a lakh depositors and multiple cooperative housing societies remain stuck with New India Cooperative Bank after the Reserve Bank of India (RBI) placed it under moratorium on Thursday. The central bank stated that the restrictions were imposed due to “supervisory concerns” arising from “recent material developments in the bank” and to safeguard depositors’ interests.
The action follows a spot inspection and a complaint filed by the bank’s chief compliance officer with the Economic Offences Wing, alleging misappropriation of funds by staff members. A police source confirmed that a bank official would be summoned to record a statement as part of the ongoing investigation.
In response to concerns over financial mismanagement, the RBI has dissolved the bank’s board and appointed an administrator along with a committee of advisers to oversee operations and work toward restoring stability. Industry insiders speculate that another cooperative bank may step in to take over its operations.