Ex-manager of New India Co-operative Bank under probe for Rs 122-crore fraud

The Mumbai Police Economic Offences Wing (EOW) has launched an investigation into a Rs 122-crore fraud at New India Co-operative Bank, allegedly committed by its former General Manager, Hitesh Pravinchand Mehta. According to police, the fraud took place between 2020 and 2025, with Mehta misusing his position to siphon off funds from the Dadar and Goregaon branches.

The case comes just two days after the Reserve Bank of India (RBI) imposed severe restrictions on the Mumbai-based bank due to "supervisory concerns and liquidity issues." The RBI has barred the bank from issuing new loans, accepting fresh deposits, or allowing withdrawals for six months. The central bank cited "recent material developments" but did not disclose specific reasons behind the move.

According to the complaint filed by the bank’s Chief Accounts Officer, Mehta is suspected of orchestrating financial irregularities at the bank, prompting the Dadar Police to register an FIR. Authorities suspect that Mehta may not have acted alone, and additional individuals could be involved in the fraud. The case has now been transferred to the EOW for further investigation.

Sources within the EOW confirmed that Mehta has been summoned for questioning. Following the bank’s internal complaint, officials have started gathering evidence related to the fraudulent transactions. Mehta's alleged misuse of power has raised concerns over financial oversight and governance failures within the cooperative banking sector.

The New India Co-operative Bank has been struggling with financial losses in recent years. As per its annual report, the bank recorded a Rs 227.8 million loss in FY 2023-24, following a Rs 307.5 million loss the previous year. These financial troubles, coupled with the latest fraud scandal, have further dented depositor confidence.