New India Cooperative Financial institution GM arrested in Rs 122 crore rip-off case

NEW DELHI: Hitesh Mehta, the final supervisor at New India Cooperative Financial institution was arrested by Mumbai police, in reference to an alleged Rs 122 crore embezzlement case, officers instructed information company PTI on Saturday.
The arrest got here after the financial institution’s appearing chief govt officer, Devarshi Ghosh, filed a criticism at Dadar police station, earlier on Saturday, accusing Mehta and others of misappropriating Rs 122 crore. Given the size of the fraud, the case was later transferred to the Financial Offences Wing (EOW) for additional investigation.
Mehta was earlier dropped at the EOW workplace in south Mumbai for questioning.
The criticism alleged that the pinnacle of accounts, Mehta conspired together with his associates to deviate funds from the financial institution’s Prabhadevi and Goregaon branches.
Police filed a case below Sections 316(5) (legal breach of belief by bankers and public servants) and 61(2) (legal conspiracy) of the Bharatiya Nyaya Sanhita.
The choice comes after the apex financial institution dissolved the cooperative financial institution’s board for a yr and appointed an administrator to supervise its operations on Friday.
The RBI additionally imposed restrictions on withdrawals, citing critical considerations over the lender’s monetary well being and the necessity to shield depositors.
New India Cooperative Financial institution operates 28 branches, majorly in Mumbai, with two in Surat and one in Pune. The RBI’s crackdown on the financial institution sparked panic amongst depositors, with many dashing to its branches on Friday morning, solely to be denied entry to their financial savings.