Mumbai: A Mumbai Court has sent New India Cooperative Bank scam accused Hitesh Mehta and Dharmesh Paun to Police custody till 21 February. The pair was presented before a holiday court in Mumbai today following their arrests by the Economic Offences Wing (EOW) of the Mumbai Police.
Hitesh Mehta, the former general manager of the bank, is accused of orchestrating a scheme that allegedly embezzled ₹122 crore from customer accounts while overseeing operations at the Dadar and Goregaon branches.
The Mumbai bank scam reportedly began shortly after the COVID-19 pandemic emerged, with ₹112 crore misappropriated from the Prabhadevi branch and ₹10 crore from Goregaon. According to the complaint, the alleged scam took place between 2020 and 2025.
The case against Mehta was registered two days after the Reserve Bank of India (RBI) imposed restrictions on the bank over alleged financial irregularities. Mehta was booked after Devarshi Shishir Kumar Ghosh, 48, the bank’s chief executive officer, filed a complaint against him, the police said.
The case stems from a complaint lodged by Devarshi Ghosh, the acting chief executive officer of New India Cooperative Bank, who reported irregularities that prompted an internal audit. This audit uncovered significant discrepancies in the bank’s financial records, leading to police investigations.
The FIR filed against Hitesh Mehta includes charges under sections pertaining to criminal breach of trust and conspiracy as defined in the Bharatiya Nyaya Sanhita.
The Reserve Bank of India (RBI) intervened on February 14, imposing restrictions on the bank’s operations due to concerns over its financial stability. These measures included barring withdrawals and appointing an administrator to oversee the bank’s affairs for one year. In light of these developments, anxious customers have flocked to branches seeking clarity on their deposits.
On Friday, thousands of panic-stricken depositors had queued up before the branches of the bank seeking to know if their money was safe and could be withdrawn.
The RBI’s restrictions prevent the bank from issuing new loans, making investments, borrowing funds or allowing withdrawals for six months due to concerns over its financial stability. The RBI also superseded the bank’s board of directors for 12 months, citing “poor governance standards”.
About The Author
