Mumbai, Feb 16 Hitesh Mehta, the General Manager of New India Cooperative Bank, arrested in connection with a Rs 122 crore financial fraud case, was on Sunday sent to the custody of the Economic Offences Wing (EOW) of the Mumbai Police till February 21 for questioning, tracing money trail and collection of evidence.
Mehta was arrested by the EOW on Saturday in connection with a Rs 122 crore financial fraud case.
The arrest came after several hours of questioning.
The police claimed that the bank scam started during the pandemic when Mehta allegedly swindled Rs 112 crore from the Prabhadevi branch of the bank. This was followed by an illegal withdrawal of Rs 10 crore from the Goregaon branch of the bank.
Earlier, on Saturday, EOW officials raided Mehta's residence at Aryavart Society, NL Complex, Dahisar.
After searching his 14th-floor apartment, they brought him to the EOW office for questioning.
An FIR was registered earlier at Dadar police station based on a complaint filed by Devarshi Shishir Kumar Ghosh, the bank's Acting Chief Executive Officer (CEO). The FIR accuses Mehta and several 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 Deputy Commissioner of Police Mangesh Shinde, who oversees financial crimes in the banking sector.
Amid financial irregularities, the Reserve Bank of India (RBI) 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 triggered panic among depositors, who rushed to bank branches seeking withdrawals, only to be turned away.
The central bank said that these restrictions were 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.
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