The investigation into the bank’s financial discrepancies began when internal audits revealed substantial cash shortages in the safes of the Prabhadevi and Goregaon branches.
Subsequent inspections by the Reserve Bank of India (RBI) uncovered a deficit of ₹112 crore at the Prabhadevi branch and ₹10 crore at the Goregaon branch. These findings prompted the RBI to impose operational restrictions on the bank and appoint an administrator to oversee its functions.
According to the Business Standard, Hitesh Mehta was apprehended last month following allegations that he and his associates orchestrated a scheme to embezzle funds from the bank.
The alleged fraud is believed to have occurred between 2019 and 2024, during which time Mehta held a position of significant authority within the institution.
Bank’s financial stability affected
To further their investigation, the EOW sought and obtained court permission to conduct a polygraph test on Mehta. The test, commonly known as a lie detector test, was administered at the state-run Forensic Science Laboratory (FSL) located in Kalina, Mumbai.
The embezzlement case has significantly impacted the New India Co-operative Bank’s financial stability and reputation. Depositors have expressed concerns over the safety of their funds, leading to increased scrutiny from regulatory bodies.
As the investigation progresses, the EOW is expected to file detailed charge sheets outlining the findings against Mehta and any co-conspirators. The outcomes of the polygraph test and other investigative measures are yet to be known and will potentially influence the charges and penalties that may be imposed.
Lie detector test, embezzlement, mumbai, New India Cooperative Bank
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