Embezzlement Scandal Rocks New India Cooperative Bank

Mumbai police are investigating Hitesh Mehta, General Manager of New India Cooperative Bank, for allegedly embezzling Rs 122 crore. The RBI has imposed restrictions and superseded the bank's board, appointing an administrator as depositors panic. The case has been transferred to the Economic Offences Wing for further investigation.

The Mumbai police have launched an investigation into Hitesh Mehta, the General Manager of New India Cooperative Bank, following allegations of a massive embezzlement scheme amounting to Rs 122 crore. Authorities registered a case against Mehta after a complaint was lodged by the bank's acting CEO, Devarshi Ghosh.

The Reserve Bank of India took swift action, superseding the cooperative bank's board for a year and installing an administrator to manage institutional affairs. This move came after the RBI cited supervisory concerns and imposed restrictions on the withdrawal of depositors' funds.

The case against Mehta and his associates is now in the hands of the Economic Offences Wing (EOW). The EOW is conducting an in-depth investigation after police transferred the case to them. The bank has 28 branches, predominantly in Mumbai.

(With inputs from agencies.)