Mumbai: Mumbai police have registered a case against the General Manager and Head of Accounts of New India Cooperative Bank for allegedly embezzling Rs 122 crore. The case has been handed over to the Economic Offences Wing (EOW) for further investigation.
What Happened?
The Acting CEO of the bank, Devarshi Ghosh, lodged a complaint at Dadar police station. According to the complaint, General Manager Hitesh Mehta and his associates conspired to misappropriate funds. The stolen money was kept in safes at the bank’s Prabhadevi and Goregaon offices. Preliminary findings suggest that unauthorized transactions and falsified financial records were used to cover up the fraud.
Legal Action
A case has been registered under sections 316(5) (criminal breach of trust) and 61(2) (criminal conspiracy) of the Bharatiya Nyaya Sanhita (BNS). The EOW has taken charge of the investigation. Officials are also looking into possible involvement of other employees and external entities.
RBI’s Response
The Reserve Bank of India (RBI) has imposed restrictions on the bank, including withdrawal limits for depositors. To protect customer interests, the RBI has also superseded the bank’s board and appointed an administrator along with a committee of advisors. Additionally, forensic audits and financial scrutiny have been ordered to assess the full extent of the fraud.
Customer Panic
Following the RBI’s action, customers rushed to the bank’s branches in Mumbai, Pune, and Surat. However, they were denied entry and access to their savings. Many depositors expressed frustration and concern over the safety of their funds, demanding government intervention and assurance of refunds.
Ongoing Investigation
Authorities are examining the financial trail to trace the embezzled amount and recover stolen funds. Law enforcement agencies are also considering asset freezes and further legal actions against those found guilty. More arrests may follow as the probe deepens.
