Mumbai police have arrested Hitesh Mehta, the General Manager and Head of Accounts at New India Co-operative Bank, for allegedly siphoning ₹122 crore from the bank’s funds. The case, initially registered at Dadar police station, has now been handed over to the Economic Offences Wing (EOW) for a detailed probe.
As per the FIR, Mehta and his associates misused their authority and violated trust by illegally handling cash from the bank’s Prabhadevi and Goregaon branches. Being in charge of treasury operations and daily transactions, Mehta allegedly exploited his position for financial misconduct.
This arrest comes at a time when concerns about the bank’s financial health are mounting. The Reserve Bank of India (RBI) has imposed restrictions on withdrawals and dissolved the bank’s board for a year due to regulatory concerns.
New India Co-operative Bank Manager Arrested
The Mumbai Police’s Economic Offences Wing (EOW) has arrested Hitesh Pravinchand Mehta, the former General Manager of New India Co-operative Bank Limited, for allegedly misappropriating ₹122 crore from the bank. The arrest took place on Saturday, and the investigation is ongoing.
According to the police, Mehta is accused of abusing his position to illegally take money from the bank’s funds while he was in charge. The financial misconduct reportedly took place at the bank’s Dadar and Goregaon branches. Due to these irregularities, the EOW summoned Mehta for questioning earlier in the day. After gathering evidence and confirming his involvement, they proceeded with his arrest.
Authorities are now investigating whether others were involved in the scheme and how the funds were misused. The case highlights growing concerns over financial fraud in banking institutions, and further legal action is expected as the inquiry progresses.
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FIR Filed Against Ex-Bank GM Hitesh Mehta
An FIR has been filed at Dadar police station against Hitesh Mehta under Sections 316(5) (criminal breach of trust by a public servant) and 61(2) of the Bharatiya Nyaya Sanhita (BNS). The complaint, lodged by the bank’s Chief Accounts Officer, accuses Mehta of withdrawing ₹122 crore between 2020 and 2025 while managing the bank’s Dadar and Goregaon branches.
The arrest follows the Reserve Bank of India’s (RBI) recent crackdown on the bank’s financial irregularities. Two days before Mehta’s arrest, the RBI imposed strict restrictions, preventing the bank from issuing new loans or accepting deposits. It also banned withdrawals for six months, triggering concerns among customers about the bank’s stability.
On Friday, the RBI further intervened by taking control of the bank’s management for one year. To restore order, the central bank appointed a former Chief General Manager of the State Bank of India as an administrator to oversee daily operations.
New India Co-operative Bank Reports ₹22.78 Crore Loss
The New India Co-operative Bank has been facing significant financial losses, reporting a deficit of ₹22.78 crore in the financial year ending March 2024. In the previous financial year, the losses were even higher, reaching ₹30.75 crore. These consecutive setbacks have raised concerns about the bank’s financial stability and overall management.
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FAQs
Q.1. Why was Hitesh Mehta arrested?
Ans. Hitesh Mehta, former GM of New India Co-operative Bank, was arrested for allegedly misappropriating ₹122 crore by misusing his position and violating banking regulations.
Q.2. What action has the RBI taken against New India Co-operative Bank?
Ans. The RBI has imposed restrictions on withdrawals, barred new loans, and dissolved the bank’s board for one year due to financial irregularities.
Q.3. How much financial loss has the bank incurred recently?
Ans. The New India Co-operative Bank reported losses of ₹22.78 crore in FY 2024 and ₹30.75 crore in the previous financial year.
Q.4. What sections were mentioned in the FIR against Hitesh Mehta?
Ans. The FIR includes Sections 316(5) (criminal breach of trust by a public servant) and 61(2) of the Bharatiya Nyaya Sanhita (BNS).
Q.5. Who is managing the bank after the RBI’s intervention?
Ans. The RBI has appointed a former Chief General Manager of the State Bank of India as an administrator to oversee daily operations.
