New India Co-Operative Bank heist: Ex-GM 'steals' Rs 122 crore from Dadar, Goregaon branch
Synopsis
The case has surfaced amid the Reserve Bank of India's (RBI) recent crackdown on New India Co-Operative Bank. On Friday, the central bank superseded the Board of Directors for a period of 12 months, citing "material concerns arising from poor governance standards."
Mumbai Police have booked former General Manager (GM) of New India Co-Operative Bank, Hitesh Praveenchand Mehta, for allegedly embezzling Rs 122 crore from the bank's treasury. This development came to light after the bank's Chief Accounts Officer lodged a complaint at Dadar police station. The Economic Offences Wing (EOW) of Mumbai Police has now taken over the investigation into the alleged financial irregularities.
The scam is believed to have taken place between 2020 and 2025 at the bank's Dadar and Goregaon branches, where Mehta was responsible during his tenure. According to reports, he allegedly siphoned off funds, misusing his position for financial misconduct.
The case has surfaced amid the Reserve Bank of India's (RBI) recent crackdown on New India Co-Operative Bank. On Friday, the central bank superseded the Board of Directors for a period of 12 months, citing "material concerns arising from poor governance standards." The RBI had already imposed restrictions on withdrawals, preventing account holders from accessing their funds for six months.
To stabilize the bank's operations, the RBI appointed Shreekant, former Chief General Manager of the State Bank of India (SBI), as the Administrator. Additionally, a Committee of Advisors has been formed to assist in managing the bank's affairs. The committee comprises Ravindra Sapra, former GM of SBI, and Abhijeet Deshmukh, a Chartered Accountant.
Following the RBI's action, chaos erupted outside the bank's Mumbai branches as panicked customers gathered in large numbers, desperate to withdraw their hard-earned savings.
Many account holders expressed concerns over the safety of their deposits, fearing a prolonged financial crisis at the institution.
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