FIR Filed Against New India Cooperative Bank GM in Rs 122 Crore Financial Fraud
In a significant development, a First Information Report (FIR) has been lodged at the Dadar Police Station in Mumbai against Hitesh Mehta, the General Manager of New India Cooperative Bank, and several of his colleagues, including the Head of Accounts, in connection with a financial fraud amounting to Rs 122 crore.
Mumbai: In a significant development, a First Information Report (FIR) has been lodged at the Dadar Police Station in Mumbai against Hitesh Mehta, the General Manager of New India Cooperative Bank, and several of his colleagues, including the Head of Accounts, in connection with a financial fraud amounting to Rs 122 crore. The complaint, filed by Devarshi Shishir Kumar Ghosh, the Acting Chief Executive Officer (CEO) of the bank, has raised serious concerns over the alleged embezzlement and misuse of official positions.
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FIR Alleges Conspiracy and Embezzlement by Senior Bank Officials
According to the FIR, the accused individuals are alleged to have conspired and misappropriated funds from the bank by exploiting their official roles. The case has now been transferred to the Economic Offences Wing (EOW) of the Mumbai Police, where the investigation will be carried out under the supervision of DCP Mangesh Shinde, who is responsible for handling banking-related financial crimes.
RBI Imposes Restrictions on New India Cooperative Bank
This FIR comes just two days after the Reserve Bank of India (RBI) imposed stringent restrictions on the operations of New India Cooperative Bank, citing concerns over the bank’s financial health and liquidity issues. The RBI’s directive, effective from February 13, 2025, restricts the bank from allowing withdrawals by customers, although loan adjustments against deposits will be permitted. Essential expenses such as employee salaries, rent, and electricity bills will still be covered.
Panic Among Depositors as Withdrawal Restrictions Take Effect
The RBI’s restrictions have triggered panic among the bank’s depositors, who rushed to various branches, only to be informed that they could not withdraw their funds. The RBI has taken these actions to protect the interests of the bank’s customers, raising concerns over the bank’s financial stability and whether it holds sufficient reserves to meet customer demands.
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Bank Not Allowed to Sell Assets, Restrictions Imposed for Six Months
In addition to the withdrawal restrictions, the bank has also been prohibited from selling its assets. The restrictions will remain in place for a period of six months, during which time the investigation into the financial fraud will continue. The RBI’s actions reflect growing scrutiny over the bank’s operations and financial condition, raising important questions about the future of the institution.
As the investigation progresses, both the bank’s management and its customers will be closely monitoring the outcomes of the inquiry into the financial misappropriation.
