Hitesh Mehta Sent to Police Custody in New India Cooperative Bank Scam Case
In a significant development in the ongoing investigation into the New India Cooperative Bank scam, a Mumbai court has remanded Hitesh Mehta and Dharmesh Paun, the accused in the case, to police custody until February 21. Mehta, the former general manager of the bank, is accused of masterminding a scheme that allegedly embezzled ₹122 crore from customer accounts at the Dadar and Goregaon branches.
The scam, which has left thousands of bank customers in a state of distress, is being investigated by the Economic Offences Wing (EOW) of the Mumbai Police. The duo was arrested earlier this month after a long investigation into the fraudulent activities of the bank.
According to sources, Mehta and Paun were produced in court after their arrest, and the court has ordered that they be kept in police custody for further questioning. The court has also asked the police to file a detailed report on the progress of the investigation by February 21.
The New India Cooperative Bank scam is one of the largest banking frauds in recent years, with Mehta and Paun accused of using their position to manipulate bank records and transfer large sums of money from customer accounts to their own accounts. The scam came to light after several customers reported irregularities in their accounts, leading to an investigation by the EOW.
The investigation has revealed that Mehta and Paun used their position to siphon off funds from customer accounts, with many customers losing lakhs of rupees. The duo allegedly used the money to fund their own business ventures and personal expenses.
The New India Cooperative Bank scam has raised concerns about the lack of oversight and regulation in the banking sector. The Reserve Bank of India (RBI) has launched an investigation into the matter, and several top officials of the bank have been suspended or terminated in connection with the scam.
The scam has also raised questions about the role of the bank’s management and the regulatory bodies in failing to detect the fraud. The RBI has promised to take strict action against those responsible for the scam, and has announced a comprehensive review of the bank’s internal controls and risk management practices.
The customer who first reported the irregularities in their account has hailed the arrest of Mehta and Paun as a major victory. “I am relieved that the accused have been arrested, but I hope that the court will ensure that they are punished severely for their crimes,” said the customer, who wishes to remain anonymous.
The case is being closely watched by banking regulators and industry experts, who are concerned about the potential impact of the scam on the stability of the banking system. The RBI has promised to take all necessary steps to ensure that the banking system is safe and secure, and that customers’ deposits are protected.
In conclusion, the arrest of Mehta and Paun is a significant step forward in the investigation into the New India Cooperative Bank scam. The court’s decision to remand them to police custody until February 21 is a major setback for the accused, and a major victory for the customers who have been affected by the scam. The case is a reminder of the importance of robust internal controls and risk management practices in the banking sector, and the need for regulators to take a tough stance against those who engage in fraudulent activities.
