Mumbai police books New India Co-operative Bank general manager for alleged misappropriation after RBI places curb

A security personnel keeps vigil at a deserted New India Cooperative Bank, in Mumbai, on February 15, 2025. After imposing business restrictions on the bank, the Reserve Bank on Friday superseded the lender’s board citing governance lapses and appointed an administrator to revive it
| Photo Credit: PTI

The Mumbai police filed an FIR against the the New India Co-operative Bank’s General Manager and Head of Accounts Hitesh Mehta for allegedly misappropriating ₹122 crore from the bank’s safe deposit box, according to a statement from Mumbai police on Saturday (February 15, 2025).

The case was filed at Dadar police station at the early hours of February 15 and was subsequently transferred to the Economic Offences Wing. “The above accused and his accomplices, in their capacity as General Manager and Head Accounts of the bank, committed criminal breach of trust and misappropriated the amount of about Rs. 122 crores of the bank’s cash kept in trust in the safe deposit boxes of Prabhadevi office and Goregaon office. Therefore, a case was registered on the complaint of the complainant” said Dadar police in a statement.

The police move comes a day after the Mumbai based- New India Co-operative Bank’s board was superseded by the Reserve Bank of India for lack of liquidity. The RBI directed the bank to not issue fresh loans, accept deposits and not allow its customers to make withdrawals. Administrative operations like paying salaries to staff and payment of utility expenses can continue, the RBI added.

A three-member committee headed by Former SBI Chief General Manager Shreekant was appointed to manage the affairs of the bank. RBI will manage the board of the bank for 12 months, according to a statement from the banking watchdog, adding that the customers can claim deposit insurance of up to ₹5 lakh.

Most of the 28 branches of this co-operative bank are located in the Mumbai megapolis, and it also has two branches at Surat in neighbouring Gujarat and one in Pune.

The RBI’s action against the bank triggered panic among its customers, who thronged its branches since morning on Friday hoping to access their savings, but were denied entry into the premises.

(With inputs from PTI)