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The Economic Offences Wing (EOW) of the Mumbai Police presented Mehta and Paun before a holiday court on Sunday, February 16. The court granted police custody to facilitate further investigation into the alleged financial misconduct. Mehta was arrested on Saturday evening following a raid at his residence in Dahisar, Mumbai. He was subsequently brought to the EOW office in South Mumbai for detailed questioning before being formally taken into custody.
The case came to light after Devarshi Ghosh, the acting Chief Executive Officer of New India Cooperative Bank, lodged a complaint at Dadar Police Station on Friday, February 14. The complaint alleges that between 2020 and 2025, Mehta and his associates conspired to siphon off ₹122 crore from the bank’s safes at its Prabhadevi and Goregaon branches. Authorities have charged the accused 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 Nyaya Sanhita.
In response to the unfolding scandal, the Reserve Bank of India (RBI) has taken decisive action to safeguard the bank’s stability and protect depositor interests. On February 14, the RBI superseded the bank’s board for a period of one year and appointed an administrator to oversee its operations. This move came a day after the central bank imposed restrictions on fund withdrawals, citing supervisory concerns and the necessity to protect depositors.
The RBI’s restrictions have led to significant anxiety among the bank’s customers. Many depositors have been seen queuing up at various branches, seeking clarity on the safety and accessibility of their funds. The bank operates 28 branches, predominantly in Mumbai, with additional branches in Surat, Gujarat, and Pune.
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