New India Co-operative Bank fraud: Ex-GM booked for allegedly siphoning Rs 122 crore

An FIR has been registered under BNS sections 316(5) and 61(2).

Mumbai Police have registered a case against Hitesh Praveenchand Mehta, former General Manager of New India Co-operative Bank, for allegedly siphoning Rs 122 crore from the bank’s treasury. Mehta, who managed the Dadar and Goregaon branches, is accused of misusing his position between 2020 and 2025 to commit financial fraud, as per ANI.

The case was filed following a complaint from the bank’s Chief Accounts Officer at the Dadar Police Station. Police suspect Mehta had an accomplice, and the case has now been transferred to the Economic Offences Wing (EOW) for further investigation, ANI adds. An FIR has been registered under BNS sections 316(5) and 61(2).

Following concerns over governance lapses, the Reserve Bank of India (RBI) has taken strict action against the Mumbai-based lender. On Thursday, the central bank imposed restrictions preventing New India Co-operative Bank from granting or renewing loans, accepting fresh deposits, or making payments without prior RBI approval.

A day later, the RBI announced the supersession of the bank’s Board of Directors for 12 months and appointed Shreekant, a former Chief General Manager of the State Bank of India (SBI), as Administrator to oversee operations. A Committee of Advisors has also been set up to assist him, comprising former SBI General Manager Ravindra Sapra and Chartered Accountant Abhijeet Deshmukh.

The RBI cited "poor governance standards" as the primary reason for its intervention.

The RBI’s actions triggered panic among customers, with hundreds gathering outside the bank’s branches across Mumbai, anxious about their savings and lockers. Many account holders scrambled to withdraw funds, fearing further financial instability.