Mumbai police books New India Cooperative Financial institution common supervisor for alleged misappropriation after RBI locations curb

A safety personnel retains vigil at a abandoned New India Cooperative Financial institution, in Mumbai, on February 15, 2025. After imposing enterprise restrictions on the financial institution, the Reserve Financial institution on Friday outdated the lender’s board citing governance lapses and appointed an administrator to revive it
| Picture Credit score: PTI

The Mumbai police filed an FIR towards the the New India Cooperative Financial institution’s Basic Supervisor and Head of Accounts Hitesh Mehta for allegedly misappropriating ₹122 crore from the financial institution’s protected deposit field, based on an announcement from Mumbai police on Saturday (February 15, 2025).

The case was filed at Dadar police station on the early hours of February 15 and was subsequently transferred to the Financial Offences Wing. “The above accused and his accomplices, of their capability as Basic Supervisor and Head Accounts of the financial institution, dedicated felony breach of belief and misappropriated the quantity of about Rs. 122 crores of the financial institution’s money saved in belief within the protected deposit bins of Prabhadevi workplace and Goregaon workplace. Subsequently, a case was registered on the criticism of the complainant” mentioned Dadar police in an announcement.

The police transfer comes a day after the Mumbai based- New India Cooperative Financial institution’s board was outdated by the Reserve Financial institution of India for lack of liquidity. The RBI directed the financial institution to not difficulty contemporary loans, settle for deposits and never permit its clients to make withdrawals. Administrative operations like paying salaries to workers and fee of utility bills can proceed, the RBI added.

A 3-member committee headed by Former SBI Chief Basic Supervisor Shreekant was appointed to handle the affairs of the financial institution. RBI will handle the board of the financial institution for 12 months, based on an announcement from the banking watchdog, including that the shoppers can declare deposit insurance coverage of as much as ₹5 lakh.

A lot of the 28 branches of this cooperative financial institution are situated within the Mumbai megapolis, and it additionally has two branches at Surat in neighbouring Gujarat and one in Pune.

The RBI’s motion towards the financial institution triggered panic amongst its clients, who thronged its branches since morning on Friday hoping to entry their financial savings, however had been denied entry into the premises.

(With inputs from PTI)