New India Cooperative Bank Scam: Hitesh Mehta, Dharmesh Paun in Police Custody Till Feb 21

Mumbai Bank Scam: A court in Mumbai on Sunday remanded Hitesh Mehta, the general manager and head of accounts of New India Cooperative Bank, in police custody till February 21 in connection with the alleged Rs 122 crore misappropriation case.

The Economic Offences Wing (EOW) of the police produced Mehta and co-accused Dharmesh Paun before a holiday court, which granted their custody till February 21 for further investigation.

Bank's Acting CEO Lodged Complaint

According to the police, Devarshi Ghosh, the bank's acting CEO, filed a complaint against Mehta and others at the Dadar police station on Friday. The complaint alleged that Mehta and his associates hatched a conspiracy and embezzled Rs 122 crore from the bank’s Prabhadevi and Goregaon branches.

The case was registered early Saturday, following which the probe was handed over to the EOW.

RBI Supersedes Bank’s Board

Amid the unfolding scandal, the Reserve Bank of India (RBI) on Friday superseded the bank's board for a year and appointed an administrator to oversee its operations.

A day before, the RBI imposed withdrawal restrictions on depositors, citing supervisory concerns and the need to protect depositor interests.

Legal Charges Filed

Mehta and his associates face charges under Sections 316(5) (criminal breach of trust by bankers and public servants) and 61(2) (criminal conspiracy) of the Bharatiya Nyay Sanhita.

Further investigations are underway to trace the misappropriated funds and identify other potential conspirators.