122 Crore Rupees Fraud at New India Cooperative Bank: Former General Manager Arrested
A major financial scam has devastated New India Cooperative Bank, by apprehension of its former director, Hesh Pin Chand Mea who was accused of stealing the sum of Rs122 crore. It was discovered that the Economic Offences Wing (EOW) of the Mumbai Police apprehended Mea on February 15th, following an investigation lasting three hours. They brought the light on a sophisticated scheme that ran between 2020 until 2025.
Uncovering the Fraud:
The scandal was exposed through an internal audit conducted by the bank that revealed important discrepancies in the bank’s financial reports. The audit exposed the fraud use of funds at its Dadar as well as Goregaon branches. Mea using his position, is believed to have withdrawn the staggering amount that was Rs122 crore. Particularly, investigators found that Rs112 crore had been taken from the Dadar branch’s treasury safe and a further amount of $10 crore was taken through the Goregaon branch.
The first complaint was made with the chief account agent in Dadar police station. Dadar police station which triggered an extensive investigation. The Dadar police had initially filed an FIR in accordance with sections 316 5 and 612 in the Banking Regulation Act, 1949 (It is crucial to remember that the subtitles do not mention an act called the Banking and Non-banking Services Act. The relevant law was that of the Banking Regulation Act, 1949.) prior to transferring the case the EOW to conduct a deeper examination.
RBI Intervention and Fallout:
The fraud was the catalyst for rapid action by The Reserve Bank of India (RBI). On February 14, the day before the arrest of Mea, the RBI overthrew the bank’s board for a time of 12 months, and appointed an administrator to oversee the bank’s business. In parallel the RBI placed a six-month limit on withdrawals, causing fear among depositors. More than 1.3 lakh depositors were affected. However, the RBI assured that 90% of depositors with deposits less than Rs5 lakh would be covered through The Deposit Insurance and Credit Guarantee Corporation (DICGC).
Ongoing Investigations and Restrictions:
The RBI has also prohibited the bank from making the bank new advances, renewing loans or making new investments. To ensure the continuation of its essential functions the bank is allowed to pay for expenses like employees’ salaries, rent and electric. Shri Kant, a former Chief General Manager of the State Bank of India, was appointed Administrator by RBI with the support of the advisory council. A forensic audit is currently underway to determine the full extent of the fraud and to identify any possible accomplices.
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