New India Co-operative bank manager remanded in police custody over ₹122 crore fraud

Hitesh Mehta, General Manager and Head of Accounts at New India Co-operative Bank, has been remanded in police custody until February 21 in connection with the alleged misappropriation of ₹122 crore from the bank.

The Economic Offences Wing (EOW) of the police presented Mehta and another accused, Dharmesh Paun, before a holiday court on Sunday, which ordered their custody for further investigation.

According to the police, Devarshi Ghosh, the bank’s acting CEO, filed a complaint at Dadar police station on Friday, accusing Mehta and others of siphoning off bank funds. Following the complaint, a case was registered early Saturday, and the investigation was handed over to the EOW.

The complaint alleges that Mehta and his associates conspired to embezzle ₹122 crore from the safes at the bank’s Prabhadevi and Goregaon branches. The police have booked them under sections 316(5) (criminal breach of trust by public servants, bankers, and those in positions of trust) and 61(2) (criminal conspiracy) of the Bharatiya Nyay Sanhita.

Amid the unfolding financial scandal, the Reserve Bank of India (RBI) stepped in on Friday, dissolving the cooperative bank’s board and appointing an administrator to oversee its operations. This action followed restrictions imposed a day earlier on fund withdrawals by depositors, with the central bank citing supervisory concerns and the need to safeguard depositors' interests.