Mumbai: The Economic Offences Wing (EOW) of the Mumbai Police has arrested Hitesh Mehta, the General Manager and Head of Accounts at the New India Cooperative Bank, for allegedly misappropriating ₹122 crore from the bank. The arrest took place on February 15, following hours of questioning by the authorities.

Along with Mehta, the alleged beneficiary of the embezzled funds, Dharmesh Paun, has also been taken into custody. Both individuals were presented before the court on Sunday, February 17, and have been remanded to police custody until February 21, 2025.

According to the complaint, Mehta and his associates siphoned off ₹122 crore from the safes of the bank’s Prabhadevi and Goregaon branches. "The accused, in his capacity as General Manager and Head of Accounts, committed a criminal breach of trust by misappropriating funds entrusted to the bank’s safe deposit boxes," the Dadar police stated.

The arrests come amid turmoil at the New India Cooperative Bank. The Reserve Bank of India (RBI) had earlier intervened due to liquidity concerns, superseding the bank’s board on February 14 and appointing an administrator to manage its affairs. The RBI also imposed restrictions on withdrawals by depositors, citing supervisory concerns.

The investigation into the large-scale financial fraud is ongoing, with authorities working to trace the misappropriated funds and identify any additional accomplices.