As per the police, Devarshi Ghosh, the financial institution’s performing chief govt officer, lodged a criticism in opposition to Mehta and others at Dadar police station in central Mumbai on Friday for alleged misappropriation of the financial institution’s funds. Based mostly on the criticism, the police registered a case within the wee hours of Saturday, and the probe was transferred to the EOW.
A case below sections 316 (5) (legal breach of belief by public servants, bankers, and others in positions of belief) and 61(2) (legal conspiracy) of the Bharatiya Nyay Sanhita has been registered.
In keeping with the FIR, Mehta, alongside together with his associates, misappropriated Rs 122 crore from the cash saved within the vaults on the financial institution’s Prabhadevi and Goregaon branches.
In keeping with the FIR, Mehta has been eradicating money from the vaults for the reason that pandemic interval and had not been sustaining a correct file of the vaults. The fraud, which allegedly happened between 2020 and 2025, was detected when discrepancies appeared within the financial institution’s monetary data. An inside audit flagged considerations over lacking funds, prompting a police investigation, the Mumbai police added.
The alleged fraud case emerged after the Reserve Financial institution of India (RBI) on Friday outmoded the cooperative financial institution’s board for a 12 months and appointed an administrator to handle its affairs. A day previous to that, it imposed a number of restrictions on the lender, together with on the withdrawal of funds by depositors, citing supervisory considerations emanating from the latest materials developments within the financial institution, and to guard the curiosity of its depositors.