New India Co-Operative Bank General Manager Booked For 'Stealing' Rs 122 Cr From Treasury

The RBI on Thursday imposed several restrictions on the city-based bank, including on withdrawal of funds by depositors, amid supervisory concerns.

Customers gather at New India Co-operative Bank, in Mumbai on February 14.

Source : PTI

The former General Manager of New India Co-Operative bank in Mumbai has been booked for allegedly stealing Rs 122 crore from the bank's treasury. The case has been registered on the basis of a complaint filed by the bank’s Chief Accounts Officer at Dadar police station. Further investigation will be carried out by the Economic Offences Wing (EOW). 

The development comes after the RBI on Thursday imposed several restrictions on the city-based bank, including on withdrawal of funds by depositors, amid supervisory concerns. The bank has 28 branches, mostly located in the Mumbai region.

In the complaint, it has been alleged that the former general manager, identified as Hitesh Praveenchand Mehta, withdrew Rs 122 crore from the treasury from the Dadar and Goregaon branches of the bank. He was responsible for these branches during his tenure. According to the complaint, the fraud allegedly took place between 2020 and 2025. 

The Dadar police have registered an FIR under Sections 316(5) and 61(2) of the BNS Act. 

EOW Summons Bank's Ex-General Manager

The Economic Offences Wing (EOW) has summoned the bank’s General Manager, Head of Accounting, and the accused in the case, Hitesh Mehta.

According to EOW sources, the money kept in the bank is recorded in the books of accounts, which revealed a discrepancy of Rs 122 crore when they were tallied.

Following this discovery, a complaint was filed, which led to an FIR against the former General Manager. The details of the bank's book accounts have been obtained by the EOW, which will undergo a forensic audit now. 

RBI Supersedes Bank Board, Appoints 'Administrator'

After imposing restrictions on the bank, the Reserve Bank of India on Friday superseded its board citing poor governance standards. A large number of bank customers had gathered at its branches after the RBI imposed restrictions on the New India Co-Operative Bank.

In a statement, the RBI said it appointed Shreekant, a former chief general manager of State Bank of India (SBI) as ‘Administrator’ to manage the bank's affairs. 

"The Board of Directors of New India Co-operative Bank, Mumbai, has been superseded for 12 months," the RBI said in a statement.

"It has also appointed a ‘Committee of Advisors’ to assist the Administrator in discharging his duties. The members of the Committee of Advisors are Ravindra Sapra (former General Manager, SBI) and Abhijeet Deshmukh (chartered accountant). The action is necessitated due to certain material concerns emanating from poor governance standards observed in the bank," it further said. 

The RBI also said that the action is necessitated due to certain material concerns emanating from poor governance standards which had been observed in the bank.

Imposing the restrictions, the RBI said it has directed not to allow withdrawal of any amount from the current and saving accounts as well as any other depositor account fue to the bank's present liquidity position. However, lenders can set off their loans against deposits in accordance with RBI conditions and essential expenditures such as salaries of employees, rent, and electricity bills can also be incurred.