EOW Investigates Rs122 Crore Fraud at New India Co-operative Bank

The Economic Offences Wing (EOW) is investigating a Rs122 crore fraud involving Hitesh Pravinchand Mehta, former General Manager of New India Co-operative Bank. Discrepancies in financial records led to a police probe, revealing large withdrawals by Mehta. The case has heightened concerns over co-operative bank governance.

The Economic Offences Wing (EOW), in a significant development, has taken over the investigation of a Rs122 crore financial fraud case involving Hitesh Pravinchand Mehta, the former General Manager of New India Co-operative Bank Limited. The Mumbai police, in their statement, confirmed the probe, which highlights the Bank's Dadar and Goregaon branches.

The alleged fraud, taking place between 2020 and 2025, initially came to light through an internal audit that identified discrepancies in the bank's financial records. The Chief Accounts Officer of the bank lodged a complaint after Mehta was accused of misappropriating funds, leveraging his senior position to siphon massive sums from the institution.

The complexity of the fraud has necessitated deeper investigation, with new inquiries uncovering the likelihood of more individuals involved. The case, initially handled by the Dadar Police, has transitioned to the EOW for a thorough forensic audit to fully uncover the extent of the fraud and to identify possible colluders.

This unfolding saga has sent ripples through the banking sector, spotlighting deficiencies in internal controls and oversight mechanisms within co-operative banks. Mumbai’s EOW, along with the Reserve Bank of India (RBI), is determined to pursue the case, ensuring those responsible are held accountable. The RBI has taken pivotal steps, including superseding the bank’s Board and appointing a new Administrator, to stabilize operations and address governance lapses.

The Reserve Bank of India, responding to governance issues at New India Co-operative Bank, recently imposed strict regulatory scrutiny. With Former SBI Chief General Manager Shreekant taking the helm as Administrator, the bank faces a pivotal reform phase under close supervision, accompanied by a Committee of Advisors.