Mumbai: New India Cooperative Bank Manager Hitesh Mehta Arrested; Is Your Money Safe? Read Details Here

The Mumbai Police's Economic Offences Wing (EOW) on Saturday arrested General Manager of New India Cooperative Bank, Hitesh Mehta in connection with alleged New India Cooperative Bank scam. Earlier that day, EOW officers questioned Hitesh regarding the allegations.

The police have conducted a medical examination of Hitesh Mehta soon after taking him into custody.

Hitesh Mehta faces accusations of embezzling Rs 122 crore from the bank based in Mumbai. The Chief Accounts Officer of the bank filed a complaint at Dadar police station, leading to a case against him. It is alleged that he withdrew Rs 122 crore from the treasury at the Dadar and Goregaon branches during his tenure overseeing these branches.

Bank's Governance Issues

On February 14, the Reserve Bank of India (RBI) took control of New India Cooperative Bank Ltd's Board of Directors for 12 months. This action followed several restrictions imposed on the lender by RBI due to governance concerns. The central bank appointed Shreekant, a former Chief General Manager of State Bank of India (SBI), as 'Administrator' to manage the bank's affairs during this period.

The RBI also established a 'Committee of Advisors' to support Shreekant in his role. The committee includes Ravindra Sapra, a former General Manager at SBI, and Abhijeet Deshmukh, a Chartered Accountant. These measures were necessary due to poor governance standards observed at New India Cooperative Bank Ltd.

Legal Defence and Allegations

Hitesh Mehta's lawyer, Chandrakant Ambani, claims his client is being wrongfully accused. He argues that no financial discrepancies were found in the bank's balance sheet or annual audit report until 2024. Ambani questions how senior officials could claim corruption occurred between 2020 and now when audits showed no irregularities.

The alleged fraud occurred between 2020 and 2025, with Mehta expected to retire in 2026. As part of their investigation into these irregularities, EOW recorded statements from bank representatives following their complaint about the matter.

Public Reaction

On Friday morning, hundreds of customers gathered outside branches of New India Co-operative Bank Limited in Mumbai to withdraw their savings. This rush followed RBI's imposition of restrictions on the lender amid concerns over its governance practices.