Mumbai Police Investigates ₹122 Crore Fraud at New India Cooperative Bank
Mumbai, India – The Mumbai Police are intensifying their investigation into alleged fraudulent activities at the New India Cooperative Bank, which reportedly involved a loss of ₹122 crore. The police’s Economic Offences Wing (EOW) plans to reach out to the Reserve Bank of India (RBI) to inquire about any past complaints associated with the bank’s operations and its level of supervision under the central bank.
Background of the Investigation
The investigation was prompted by an RBI inspection, conducted unexpectedly on February 12, which uncovered discrepancies amounting to ₹112 crore at the Prabhadevi branch and an additional ₹10 crore at the Goregaon branch of the bank. Following the revelation of these missing funds, the EOW registered a formal case.
EOW officials have since arrested Hitesh Mehta, the bank’s general manager and head of accounts, on suspicion of being involved in the alleged embezzlement. According to the police report filed in connection with the case, Mehta, along with several accomplices, is accused of stealing substantial amounts directly from the bank’s vaults.
Allegations Beyond Embezzlement
The case’s complexity appears to increase as Devarshi Shishirkumar Ghosh, the bank’s acting chief accounting officer, has emerged as the complainant. Ghosh alleges additional irregularities at the bank, specifically relating to cash flows, non-performing assets, and undisclosed loans provided to select bank employees. These claims could suggest a systemic issue within the bank’s financial management practices.
RBI’s Role and Oversight
As part of the ongoing investigation, the Mumbai Police aim to establish the extent to which the RBI was involved in monitoring the bank’s operations prior to the alleged fraud coming to light. It has been noted that the complaints regarding the bank were first raised with the RBI in 2021. Following those alerts, the RBI appointed a nominee to the bank’s board, suggesting a degree of oversight was implemented.
An official familiar with the case highlighted the significance of understanding the RBI’s Standard Operating Procedures (SOPs) and the timelines associated with their responses to reported irregularities. The inquiry aims to clarify what actions, if any, were taken by the RBI after these initial complaints were lodged.
Moreover, the police are seeking answers regarding whether the February inspection was a random check or triggered by whistleblower information, which could further inform the investigation’s direction.
Next Steps in the Investigation
As the Mumbai Police continues to unravel the details of the fraud case, the outcomes of their inquiries into both the RBI’s supervision and the internal operations of New India Cooperative Bank will be critical. The request for clarity into the RBI’s past interactions with the bank could potentially unveil lapses in regulatory oversight, raising questions about the protective measures in place for depositors.
As this story develops, both the Mumbai Police and the RBI’s responses will be closely monitored, reflecting a broader concern regarding financial accountability and integrity within the banking sector in India.
For more updates on this case and other financial news, stay tuned to Smart Money Mindset.
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