Bank Scandal: GM Arrested for Rs 122 Crore Fraud

Hitesh Mehta, GM of New India Cooperative Bank, was arrested for embezzling Rs 122 crore. The RBI superseded the bank's board, restricting withdrawals to protect depositors. Mehta, accused of conspiracy, embezzled funds from Prabhadevi and Goregaon branches. Panic ensued among customers as the bank's credibility waned.

In a significant financial blow, Hitesh Mehta, the General Manager and Head of Accounts at New India Cooperative Bank, was arrested for allegedly misappropriating Rs 122 crore, according to Mumbai police reports.

The arrest followed a thorough interrogation by the Economic Offences Wing (EOW), revealing a conspiracy to embezzle funds from the bank's Prabhadevi and Goregaon offices. This led to the Reserve Bank of India (RBI) stepping in to appoint an administrator and implement withdrawal restrictions.

Amidst these developments, customers flocked to the bank's branches, concerned about their savings. The case, registered under relevant sections of the Bharatiya Nyaya Sanhita, underscores significant financial malpractice within the institution.