Hitesh Mehta Arrested for Allegedly Embezzling 122 crore from New India Cooperative Bank has become a significant news development in the banking sector. On February 15, 2025, the General Manager of the bank, Hitesh Mehta, was taken into custody by the Economic Offences Wing (EOW) of the Mumbai Police for allegedly misappropriating funds amounting to ₹122 crore. The arrest follows a formal complaint from the bank’s Chief Accounts Officer and has raised concerns about the financial management at New India Cooperative Bank.
Details of the Alleged Embezzlement
Hitesh Mehta Arrested for Allegedly Embezzling 122 crore stems from a detailed investigation into financial discrepancies reported at the New India Cooperative Bank. According to the allegations, Mehta misappropriated funds from the bank’s branches in Dadar and Goregaon over a period from 2020 to 2025. As General Manager, Mehta was responsible for overseeing the operations of these branches, during which the alleged fraud occurred.
Despite the serious nature of the charges, Mehta has denied the allegations. His lawyer, Chandrakant Ambani, asserts that no irregularities were found in the bank’s annual audits or its financial balance sheets up until 2024. However, the accusations remain under investigation, and the authorities are working to determine the full extent of the alleged financial misconduct at New India Cooperative Bank.
RBI’s Intervention and Oversight of New India Cooperative Bank
Hitesh Mehta Arrested for Allegedly Embezzling 122 crore is just one aspect of a broader set of actions taken by the Reserve Bank of India (RBI) to address governance concerns at New India Cooperative Bank. On February 14, 2025, the RBI superseded the bank’s board of directors for a period of 12 months, citing issues with the bank’s management practices. This decision was made after the RBI raised concerns regarding the oversight and financial operations at the cooperative bank.
The RBI has appointed Shreekant, a former Chief General Manager at the State Bank of India (SBI), as the Administrator to manage New India Cooperative Bank during this suspension. Additionally, a Committee of Advisors, including experts like Ravindra Sapra and Abhijeet Deshmukh, has been established to provide guidance in the bank’s governance.
Customer Concerns Following the Arrest of Hitesh Mehta
Following the news that Hitesh Mehta Arrested for Allegedly Embezzling 122 crore, customers of New India Cooperative Bank expressed significant concerns regarding the stability of the bank. On February 14, account holders at the bank rushed to various branches in Mumbai to withdraw their deposits, fearing the ongoing investigations could jeopardize the bank’s financial security. The uncertainty created by these developments has sparked widespread anxiety about the future of the bank.
Legal Proceedings and Future Implications
Hitesh Mehta Arrested for Allegedly Embezzling 122 crore is just the beginning of a lengthy legal process. Mehta has been interrogated by the EOW, and the authorities are continuing to investigate the alleged financial irregularities at New India Cooperative Bank. The outcome of this case could have far-reaching implications for both the bank and the wider cooperative banking sector in India, particularly concerning governance and accountability.
As the investigation proceeds, Mehta’s defense team insists that no fraudulent activities were detected in the bank’s official financial records. However, the legal process will play a critical role in determining the future of New India Cooperative Bank and its management practices.
Conclusion
Hitesh Mehta Arrested for Allegedly Embezzling 122 crore has become a defining moment in the ongoing concerns surrounding New India Cooperative Bank’s operations. The arrest, coupled with the RBI’s intervention, highlights the growing scrutiny of cooperative banks in India. As the investigation unfolds, the legal and financial ramifications of this case will likely have lasting effects on the cooperative banking sector’s governance.
Image source
The Voice Of Citizens @TVOCNews
