New India Cooperative Bank Under RBI Restrictions: GM Arrested By EOW In Rs 122 Crore Fraud Case

RBI Restrictions On New India Cooperative Bank: The Economic Offences Wing (EOW) of the Mumbai Police arrested Hitesh Mehta, General Manager of New India Cooperative Bank, on Saturday in connection with a ₹122 crore financial fraud case. His arrest followed several hours of questioning and marks the first major action since the Reserve Bank of India (RBI) imposed restrictions on the bank.

Mehta is set to appear in court on Sunday, where the EOW will seek his custody to trace the money trail and uncover how the funds were misappropriated. Several of his colleagues are also under investigation.

Earlier on Saturday, EOW officials raided Mehta’s residence at Aryavart Society, NL Complex, Dahisar. After searching his 14th-floor apartment, they detained him and took him to the EOW office for interrogation.

The case was registered at Dadar Police Station based on a complaint by Devarshi Shishir Kumar Ghosh, the bank’s Acting Chief Executive Officer (CEO). The FIR accuses Mehta and multiple senior officials from the bank’s accounts department of financial embezzlement.

According to the complaint, the accused allegedly misused their positions, conspired, and siphoned off Rs 122 crore from the bank. The case is being investigated under the supervision of DCP Mangesh Shinde, who oversees financial crimes in the banking sector. The fraud is believed to have taken place between 2020 and 2025.

Amid financial irregularities, the 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, such as salaries, rent, and utility bills, remain permitted.

The RBI’s move has triggered 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 protect customers’ interests. Additionally, the bank has been prohibited from selling any assets during the six-month restriction period.

New India Cooperative Bank has been struggling with financial losses in recent years. (With IANS Inputs)