Sat Feb 15 15:32:16 UTC 2025: ## Mumbai Cooperative Bank Manager Arrested for ₹122 Crore Embezzlement

**Mumbai, February 16, 2025** – Hitesh Mehta, the General Manager and Head of Accounts of the New India Cooperative Bank, was arrested on Saturday for allegedly embezzling ₹122 crore. The arrest, made by the Mumbai police’s Economic Offences Wing (EOW), follows the Reserve Bank of India’s (RBI) decision on Friday to supersede the bank’s board due to governance lapses and liquidity issues.

The RBI imposed restrictions on the bank on Thursday, including a freeze on withdrawals, citing supervisory concerns. A complaint filed by the bank’s acting CEO, Devarshi Ghosh, alleges that Mehta, along with associates, misappropriated funds from the bank’s Prabhadevi and Goregaon branches. The embezzlement allegedly began during the COVID-19 pandemic. ₹112 crore was reportedly taken from Prabhadevi, and ₹10 crore from Goregaon.

Mehta has been charged under the Bharatiya Nyaya Sanhita (BNS) with criminal breach of trust and criminal conspiracy. He will appear in court on Sunday. A three-member committee has been appointed by the RBI to manage the bank’s affairs for the next year. Depositors are covered by deposit insurance up to ₹5 lakh.

The New India Cooperative Bank, established in 1968, has 28 branches primarily in Mumbai, with a few in Surat and Pune. The bank has reported losses for the past two years and failed to meet the RBI’s capital adequacy ratio requirements. The situation has sparked political concern, with Member of Parliament Supriya Sule vowing to raise the issue with the Finance Minister and Minister of Cooperation. Despite the RBI’s restrictions, customers flocked to branches hoping to make withdrawals.

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