Mumbai New India Cooperative Bank INR 122 Million Embezzlement Case

In February 2025, the New India Cooperative Bank in Mumbai was hit by an embezzlement scandal involving approximately INR 122 million. The bank's former general manager, Hitesh Mehta, was accused of illegally siphoning funds through fake accounts and fraudulent loans. The Reserve Bank of India intervened swiftly, imposing operational restrictions and appointing an administrator to stabilize the institution. Mumbai Police's Economic Offences Wing arrested Mehta, revealing serious lapses in internal controls. The case triggered depositor panic and highlighted critical vulnerabilities in cooperative bank supervision.

As of mid-2025, Hitesh Mehta remains in custody facing charges of criminal breach of trust and fraud. The investigation is still ongoing, and no trial date has been set.

Whether the fraud was primarily driven by individual executive misconduct or systemic regulatory and internal control failures, and how such a large sum was moved without detection.

The scandal triggered a run on the bank by panicked depositors and severely eroded public trust in cooperative banks. It forced the Reserve Bank of India to tighten oversight and supervisory norms, while igniting a broader public debate on governance reforms within the cooperative banking sector.