After filing an FIR in the New India Cooperative Bank case, the Economic Offences Wing (EOW) of Mumbai on Friday night arrested Hitesh Mehta, 57, general manager and head of accounts of the bank for allegedly embezzling Rs 122 cr. The Reserve Bank of India has already superseded the board of directors of the Bank and placed heavy restrictions on its functioning following allegations of large scale financial irregularities.
Joint commissioner of police (EOW) Nishit Mishra, confirmed the arrest,
The Dadar Police registered an FIR against Hitesh Mehta for allegedly embezzling Rs.122 crore from the bank. He will be produced in the holiday court at the Esplanade on Sunday for police remand.
The FIR stated that the accused and his associates embezzled Rs.122 crore deposited by customers at the Bank’s Prabhadevi and Goregaon branches.
The case has been registered under sections 316(5) (criminal breach of trust by a banker) and 61(2) (criminal conspiracy) of the Bharatiya Nyaya Sanhita. Soon after registering the FIR, the Dadar Police transferred the case to the Economic Offences Wing since the amount involved was large. The FIR was filed based on a complaint by the bank’s Chief Executive Officer, Devashri Ghosh, 48, a resident of Worli.
DCP Mangesh Shinde of the EOW stated, “Based on the complaint by Ghosh the Dadar Police registered a case against Hitesh Mehta. He is accused of embezzling Rs.122 crore from the bank, and further investigation is ongoing. At present, Hitesh’s statement is being recorded, and as the investigation progresses, further action will be taken accordingly.” On Friday, around 10:30 p.m., the police raided Mehta’s residence in Aryavrat Society, Dahisar. Following the raid, Mehta was taken into custody for questioning and subsequently arrested.
Sources claimed that Hitesh Mehta has confessed to the fraud before Reserve Bank of India (RBI) officials. Mehta admitted to withdrawing money from the bank from the COVID-19 period (2020) to February 2025 and distributing it among his close associates and friends.
The accused’s lawyer, Advocate Chandrakant Ambani, however stated, “My client is being framed in this case. How did the CEO who complained to the police sign off on the bank’s audit report as satisfactory until last month? My client is accused of cash manipulation in the bank’s accounts from 2020. The bank and the RBI conduct three audits every year. So how did the alleged fraud of Rs.122 crore come to light only now? Why was it not noticed earlier?”
“There is a big conspiracy in this case. It is not a very big bank, so how could the fraud of Rs.122 crore continue, and the CEO and chairman of the bank were unaware? This is not possible.” Advocate Ambani added.
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According to EOW sources, a discrepancy of Rs.122 crore was discovered when the bank’s books of accounts were tallied. Following this discovery, a complaint was filed, leading to an FIR against the General Manager. The EOW has obtained the details of the bank’s accounts, which will now undergo a forensic audit.
During an audit, the RBI found discrepancies in the bank’s cash reserves Rs.112 crore missing from the Prabhadevi branch vault and Rs.10 crore from the Goregaon branch vault. The investigation is ongoing, and more revelations are expected.
The Reserve Bank on Thursday imposed several restrictions on the city-based bank, including limiting withdrawals by depositors, amid supervisory concerns. The bank has 28 branches across Mumbai. On Friday, the RBI superseded its board, citing poor governance standards.
On Friday, anxious customers gathered in large numbers outside almost every branch. Eligible depositors will be entitled to receive deposit insurance claims up to a ceiling of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC), as applicable under the provisions of the DICGC Act, 1961. They have been advised to contact the bank for further information, and details can be accessed on the DICGC website.
