Mumbai, Feb 20 BJP leader and former MP Kirit Somaiya on Thursday urged the Enforcement Directorate (ED) to investigate the New India Cooperative bank fraud case.
In a letter addressed to ED Director Rahul Navin, Somaiya said, “Reserve Bank of India (RBI) has issued a notice to New India Cooperative Bank Limited, Mumbai, restricting it from issuing new loans, accepting fresh deposits, or allowing withdrawals for the next six months. The central bank said the decision was taken due to concerns over the bank's financial health and liquidity.”
He further added that the Economic Offence Wing of the Mumbai Police has already initiated an investigation and found Rs 122 crore fraud by New India Cooperative Bank GM.
“It is felt that hundreds of crores of fraudulent transactions have taken place. Money might have been taken out of the country. More than one lakh depositors suffer. Request you ED investigation of New India Cooperative Bank Fraud,” he said.
Somaiya’s demand for an ED probe came after a court remanded Hitesh Mehta, the general manager and head of accounts of the New India Cooperative Bank, in police custody till February 21 in a case of alleged misappropriation of Rs 122 crore from the bank. The EOW had produced Mehta and Dharmesh Paun, another accused in the case, before the court. Devarshi Ghosh, the bank's acting chief executive officer, had lodged a complaint against Mehta and others at Dadar police station last Friday citing alleged misappropriation of the bank's funds.
Ghosh had further claimed that Mehta and his associates hatched a conspiracy and also accused them of misappropriation of funds worth Rs 122 crore from the Prabhadevi and Goregaon offices of the bank.
Thereafter, the police registered a case under sections 316 (5) (criminal breach of trust by public servants, bankers, and others in positions of trust) and 61(2) (criminal conspiracy) of the Bharatiya Nyay Sanhita.
The Reserve Bank of India (RBI) had restricted New India Co-op Bank from issuing new loans, making investments, or accepting fresh deposits without prior approval, effective from February 13. The bank has been directed not to allow withdrawal of any amount from savings or current accounts or any other account of a depositor.
The RBI said in a circular, “From the close of business on February 13, 2025, the bank shall not, without prior approval of RBI in writing, grant or renew any loans and advances, make any investment, incur any liability, including borrowing of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets.”
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