Ex-CEO of New India Co-Op Bank, banned by RBI, arrested in ₹122 crore embezzlement case

Ex-CEO of New India Co-Op Bank, banned by RBI, arrested in ₹122 crore embezzlement case

Ex-CEO of New India Co-Op Bank, banned by RBI, arrested in ₹122 crore embezzlement case PTI | Feb 21, 2025 04:54 PM IST Read this news in brief form Share Via Copy Link Ex-CEO of New India Co-Op Bank arrested in ₹122 crore embezzlement case

Economic Offences Wing (EOW) of Mumbai Police has arrested former chief executive officer (CEO) of the New India Co-Operative Bank Abhimanyu Bhoan in a ₹122 crore embezzlement case, an official said on Friday.

The former General Manager and Head of Account of New India Cooperative Bank has been booked by the Mumbai Police.(PTI)

This is the third arrest in the case. The bank's general manager Hitesh Mehta is accused of misappropriating a total of ₹122 crore in cash from the bank's safe over a period of time.

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Bhoan had been called to record his statement on Thursday and Friday. After his role in the crime became apparent during the interrogation, he was placed under arrest late Friday night, said an EOW official.

The EOW had earlier arrested Hitesh Mehta and developer Dharmesh Paun in the case. The alleged misappropriation of funds came to light following an inspection by the Reserve Bank of India.

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"Considering the bank's present liquidity position, the bank has been directed not to allow withdrawal of any amount from savings bank or current accounts or any other account of a depositor," the RBI wrote in its announcement.

RBI banned withdrawals by deposits of the New India Co-operative bank but allowed it to set off loans against deposits, which is subject to certain conditions.

The bank can also incur expenditure on salaries of employees, rent, and electricity bills.

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The RBI also announced that the bank should not grant or renew any loans and advances, make any investment, and incur any liability, which includes acceptance of fresh deposits, without prior approval.

"These directions are necessitated due to supervisory concerns emanating from the recent material developments in the bank, and to protect the interest of depositors of the bank," the central bank said.