Hitesh Praveenchand Mehta, the New India Cooperative Bank, Mumbai General Manager (GM) has been arrested in a Rs 122 crore scam
On Thursday, the Reserve Bank of India (RBI) banned the NICB from making new loan offers and halted deposit withdrawals for a period of six months, beginning on February 13.
Despite serving as the industries minister in the Janata administration under Prime Minister Morarji Desai in 1977, George Fernandes, a fervent trade union leader and ardent socialist is a footnote in India’s commercial history.
Who is Hitesh Praveenchand Mehta as New India Cooperative Bank, Mumbai General Manager (GM) is arrested in Rs 122 crore scam after RBI action
Mumbai Police have filed a case against Hitesh Praveenchand Mehta, the former General Manager of the bank, for allegedly diverting ₹122 crore from its treasury.
Mehta, who managed the Dadar and Goregaon branches, is accused of abusing his position to carry out fraudulent… pic.twitter.com/liainHdkGb
— Mid Day (@mid_day) February 15, 2025
Depositors are currently suffering as a result of a major crisis at a cooperative bank established by the late socialist politician, labour unionist, and former defence minister George Fernandes. Outside the New India Cooperative Bank (NICB) branches in Mumbai, a sizable crowd was observed. On Thursday, the Reserve Bank of India (RBI) banned the NICB from making new loan offers and halted six-month deposit withdrawals.
The RBI named Shreekant, a former chief general manager of the State Bank of India (SBI), as an administrator to manage the bank’s operations during the 12-month period after replacing the board of the Mumbai-based NICB on Friday. In addition, a Committee of Advisors was created by the apex bank to support the Administrator.
In a related incident, Hitesh Praveenchand Mehta, the former general manager of the NICB, has been charged by the Mumbai Police’s Economic Offenses Wing with embezzling Rs 122 crore from the organization’s treasury.
The Mumbai Police Economic Offences Wing (EOW) arrested another accused in the Rs 122 crore New India Co-operative Bank scam case on Sunday. EOW arrested a developer, a day after former General Manager Hitesh Mehta was arrested and the arrested developer is identified as Dharmesh Paun.
The investigation has revealed that Dharmesh took Rs 70 crore out of the Rs 122 crore embezzled in this case and the EOW said that Dharmesh received Rs 1.75 crore in May and December 2024 and Rs 50 lakh in January 2025 from the main accused GM Mehta.
Both the accused have been brought and produced in front of the Holiday Court in Mumbai after on February 13, the Reserve Bank of India (RBI) imposed several restrictions on the bank due to irregularities. Following the transaction restrictions the bank’s customers are facing serious problems.
According to the complaint, this fraud took place between 2020 and 2025 and a bank official informed the Economic Offences Wing that irregularities have been found in the bank’s books of account and cash tally. Investigation revealed that there were irregular withdrawals of money in Dadar and Goregaon branches, behind which GM Hitesh Mehta was said to be involved.
Between 2020 and 2025, Mehta, who was in charge of the Dadar and Goregaon branches, is said to have abused his position to commit fraud.
#BreakingNews: ₹122 crore scam in New India Cooperative Bank
Mumbai Police register case against former GM Hitesh Pravinchand Mehta #RBI had frozen the bank's deposits after missing funds complaint
Mirror Now's @RuchaKanolkar15 brings in more details | @aayeshavarma pic.twitter.com/BBLtNkC0MO
— Mirror Now (@MirrorNow) February 15, 2025
In the complaint, it has been alleged that the former general manager, identified as Hitesh Praveenchand Mehta, withdrew Rs 122 crore from the treasury from the Dadar and Goregaon branches of the bank and was responsible for these branches during his tenure.
The Dadar police have registered an FIR under Sections 316(5) and 61(2) of the BNS Act against the bank’s General Manager, Head of Accounting, and the accused in the case, Hitesh Mehta with his residence also being raided.
Mumbai: New India Cooperative Bank scam accused Hitesh Mehta will be produced for a hearing at Mumbai's Holiday Court.
Former General Manager of New India Co-operative Bank Limited, Hitesh Pravinchand Mehta, allegedly withdrew Rs 122 crore from the bank when he was responsible… pic.twitter.com/6dEBfBmv6C
— AI Day Trading (@ai_daytrading) February 16, 2025
The German Labour Bank, which successfully served the needs of businesses, industry, and workers while straddling the divide between workers and businessmen, served as an inspiration for the NICB’s founding fathers. The NICB has a long and illustrious history.
Digambar Shirodkar is the current Managing Director of New India Bank.
About George Fernandes
George Fernandes, a Mangalore native moved to Bangalore in 1946 to receive priest training. He joined the communist trade union movement in Bombay after relocating there in 1949. Working for the Indian Railways in the 1950s and 1960s, Fernandes organized numerous strikes and bandhs in Bombay before rising to the position of trade union head.
Mumbai, Maharashtra: EOW raided the residence of Hitesh Mehta, the former manager of New India Co-operative Bank, over allegations of a ₹122 crore embezzlement. Following the raid, he was detained and taken to the EOW office in Mumbai for questioning. The investigation is… pic.twitter.com/K6yJkCnniu
— IANS (@ians_india) February 15, 2025
In the 1967 parliamentary elections, he won the Bombay South seat from Indian National Congress candidate S K Patil. He spearheaded the 1974 railway strike while serving as president of the All India Railwaymen’s Federation.
While protesting Prime Minister Indira Gandhi’s imposition of a state of emergency in 1975, Fernandes went into hiding. However, he was captured and put on trial in the notorious Baroda dynamite case in 1976.