Mumbai, Feb 15 (IANS): Two days after the Reserve Bank of India (RBI) imposed restrictions on the operations of New India Cooperative Bank, a First Information Report (FIR) has been registered at the Dadar Police Station in Mumbai, alleging financial embezzlement within the bank.
The complaint, filed under relevant sections of the Bharatiya Nyay Sanhita (BNS), was lodged by Devarshi Shishir Kumar Ghosh, 48, the Acting Chief Executive Officer (CEO) of the bank.
The primary accused in the case is Hitesh Mehta, the General Manager of the bank. The FIR also names several of his colleagues, including people serving as General Manager and Head of Accounts.
According to the FIR, the accused allegedly misused their official positions, conspired, and embezzled Rs 122 crore from the bank.
The investigation has been transferred to the Economic Offences Wing (EOW) of Mumbai Police. The probe will be conducted under the supervision of DCP Mangesh Shinde, who oversees banking-related financial crimes.
The RBI has imposed restrictions on the bank due to supervisory concerns and liquidity issues. The directive, effective from Thursday, bars the bank from allowing withdrawals but permits loan adjustments against deposits. Essential expenses like employee salaries, rent, and electricity bills can still be covered.
The Reserve Bank had come to know that the financial condition of this bank was not good.
The RBI is now raising questions about whether the bank has enough money or not. Therefore, people have been prohibited from withdrawing money from their savings account, current account or any other account.
The Reserve Bank has said that these restrictions have been imposed to protect the interests of the customers.
Additionally, the bank will not have the authority to sell any of its assets. These restrictions will remain in effect for a period of six months, beginning from February 13, 2025.
The restrictions caused panic among the depositors who rushed to the bank’s respective branches only to be told that they couldn’t withdraw their money.
The Economic Offences Wing (EOW) of Mumbai Police has detained Hitesh Mehta, General Manager of New India Cooperative Bank, in connection with a Rs 122 crore financial fraud case.
On Saturday, EOW officials conducted a raid at Mehta’s residence in Dahisar, Mumbai, at Aryavrat Society, NL Complex. Following the search at his 14th floor apartment, Mehta was taken into custody and brought to the EOW office for interrogation.
An FIR was earlier registered at Dadar Police Station against Mehta, accusing him of financial embezzlement. The complaint was lodged by Devarshi Shishir Kumar Ghosh, 48, the Acting Chief Executive Officer (CEO) of the bank. Alongside Mehta, several of his colleagues, including senior officials from the bank’s accounts department, have been named in the case.
According to the FIR, the accused allegedly misused their official positions, conspired, and siphoned off Rs 122 crore from the bank. The investigation is now being handled by the EOW under the supervision of DCP Mangesh Shinde, who oversees financial crimes related to the banking sector.
The fraud is said to have taken place between 2020 and 2025.
Amid financial irregularities, the Reserve Bank of India (RBI) on Thursday imposed restrictions on New India Cooperative Bank due to liquidity concerns. Effective from February 13, 2025, the bank has been barred from allowing withdrawals, though customers can adjust loans against deposits. However, essential operational expenses, including salaries, rent, and utility bills, will still be permitted.
The RBI’s action has sparked panic among depositors, who rushed to bank branches seeking withdrawals, only to be turned away. The central bank has stated that these restrictions are necessary to safeguard customers’ interests. Additionally, the bank has been prohibited from selling any of its assets during the six-month restriction period.
The New India Co-operative Bank has been struggling with financial losses in the last few years.