Banking Betrayal: Inside the Misappropriation Scandal

Hitesh Mehta and Dharmesh Paun were remanded by a court until February 21 for allegedly misappropriating Rs 122 crore from New India Cooperative Bank. Mehta confessed in front of the RBI, implicating a wider network. The Reserve Bank imposed restrictions and appointed an administrator following the scandal.

A legal storm has erupted as the court has remanded Hitesh Mehta, general manager of New India Cooperative Bank, and his accomplice Dharmesh Paun till February 21. They are accused of a Rs 122 crore misappropriation from the bank.

The Economic Offences Wing of the police revealed Mehta's confession before the Reserve Bank of India, indicating possible deeper involvement by others. A complaint by the bank's acting CEO, Devarshi Ghosh, triggered the investigation. The inquiry is critical as public deposits and the financial integrity of the bank are at stake.

Mehta and Paun face charges under sections related to criminal breach of trust and conspiracy. To safeguard depositor interests, the Reserve Bank has appointed an administrator and suspended the board while imposing withdrawal restrictions.