Sat Feb 15 15:08:01 UTC 2025: ## Mumbai Police Arrest Former Bank Manager in Rs 122 Crore Embezzlement Case

**Mumbai, India –** The Economic Offences Wing (EOW) of the Mumbai police arrested Hitesh Mehta, the former general manager and head of accounts of New India Cooperative Bank, on Saturday. Mehta is accused of embezzling Rs 122 crore (approximately $14.8 million USD) from the bank. He is scheduled to appear in court Sunday.

The arrest follows the Reserve Bank of India’s (RBI) imposition of restrictions on the bank on February 13th due to alleged financial irregularities. These restrictions, in effect for six months, prevent the bank from issuing new loans, making investments, borrowing funds, or allowing withdrawals. The RBI also superseded the bank’s board of directors for a year, citing poor governance. A complaint filed by the bank’s CEO, Devarshi Shishir Kumar Ghosh, alleges that Mehta and an accomplice conspired to embezzle the funds between 2020 and 2025.

The EOW raided Mehta’s residence, seizing documents as evidence. The FIR, filed under sections of the Bharatiya Nyaya Sanhita (BNS), charges Mehta with criminal breach of trust and criminal conspiracy. The RBI has appointed an administrator to manage the bank’s affairs, which has 30 branches and a deposit base of Rs 2,436 crore. The bank reported losses of Rs 22.78 crore in 2023-24 and Rs 30.74 crore in 2022-23. This arrest marks a significant development following the collapse of the Punjab and Maharashtra Co-operative Bank due to fraudulent loans. Thousands of depositors panicked following the RBI’s announcement, lining up at bank branches concerned about their savings.

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