Former general manager of new india cooperative bank banned by rbi 'cheated' bank of ₹122 crore

Former general manager of new india cooperative bank banned by rbi 'cheated' bank of ₹122 crore

The Mumbai Police has registered a case against Hitesh Pravinchand Mehta, the former general manager and head of accounts of New India Cooperative Bank, for allegedly cheating the bank of ₹122 crore.

The Reserve Bank of India superseded the bank's board and banned all operations from close of business on Thursday onwards.

According to police, the bank's acting CEO Devarshi Ghosh approached the Dadar Police Station in central Mumbai and lodged a complaint of misappropriation of funds. ‘As per the complaint, the bank's general manager and head of accounts, Hitesh Mehta, along with other associates hatched a conspiracy and embezzled ₹122 crore from the money kept in the safes of Prabhadevi and Goregaon offices of the bank,’ a police official told PTI.

Based on the complaint, a case under the Bharatiya Nyaya Sanhita (BNS) sections 316 (5) (criminal breach of trust by public servants, bankers, and others in positions of trust), 61(2) (criminal conspiracy) was registered against Mehta and others, he said. Considering the scope of the investigation, the case was then transferred to the EOW, he said, adding that the agency has launched a probe.

RBI order for New India Cooperative Bank

Reserve Bank of India's actions against the bank included barring it from granting or renewing any loans and advances, making any investment or incurring any liability, including borrowing of funds and acceptance of fresh deposits.

The RBI also banned the bank from disbursing or agreeing to disburse any payment, whether in the discharge of its liabilities and obligations or otherwise, entering into any compromise or arrangement, and selling, transferring, or otherwise disposing of any of its properties or assets.

Following RBI's order, several bank customers panicked outside its branch. Many were able to access lockers containing their valuables, but all requests for withdrawal of funds were turned down, with banners at branch gates saying deposits would be paid back in around 90 days. At several places, police were deployed to keep the swelling crowds under check.