Sat Feb 15 20:07:55 UTC 2025: **Mumbai Police Arrest New India Cooperative Bank General Manager for ₹122 Crore Embezzlement**

**Mumbai, February 16, 2025** – Hitesh Mehta, General Manager and Head of Accounts at the New India Cooperative Bank, was arrested Saturday for allegedly embezzling ₹122 crore from the bank. The arrest, made by the city’s Economic Offences Wing (EOW), follows the Reserve Bank of India’s (RBI) decision 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 Mehta and associates misappropriated funds from the bank’s Prabhadevi and Goregaon branches. The misappropriation, which began during the COVID-19 pandemic, involved ₹112 crore 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 is scheduled to appear in court Sunday. A three-member committee has been appointed to manage the bank’s affairs for the next year, during which time the RBI will oversee its board. Depositors are insured up to ₹5 lakh.

The New India Cooperative Bank, founded in 1968, has 28 branches primarily in Mumbai, with additional branches in Surat and Pune. The bank has reported losses for the past two years and failed to meet RBI capital adequacy requirements. The situation has sparked political reaction, with MP Supriya Sule expressing concern and promising to raise the issue with the Finance and Cooperation Ministers.

Read More