New India Cooperative Bank scam: Ex-GM was giving depositor’s money to traders as unsecured loans during Covid

Trying to find answer to questions like why the gross financial irregularities at the bank was not flagged in the past five years at the time of annual auditing, EOW officials are also questioning other staff at the bank and may soon question the auditors. Every year, RBI too conduct bank’s audits.

EOW officials have also identified the manager at the treasury department who was responsible for keeping records of the cash reserves of the bank. He is also being questioned by the EOW officials.

Police sources said that Mehta is suspected to have given the money of the bank’s depositors on interest to others as unsecured loans during the Covid period.

“Preliminary information revealed that seeing that the small businessmen were in dire need of money due to heavy losses in the business during Covid period, Mehta gave them loans on interest.

Mehta similarly gave money to Paun and Arunachalam. Mehta also used some money for his personal and family need,” EOW officials said
Mehta had also bought a flat from Dharmesh a few years ago and from there they became friends.

When asked what kickbacks or interest Mehta was earning by giving unsecured or friendly loans from the bank’s depositor’s money, EOW officers have not shared much details and said they are still investigating into this aspect and verifying certain information.

Mehta is a commerce graduate and started working with the bank in 1987. He was due for retirement in October this year. He was appointed as General Manager and Head Accountant in 2002.

In the preliminary investigation, it has been revealed that Mehta allegedly embezzled Rs 112 crore from the vaults of Prabhadevi office and Rs 10 crore from the vaults of Goregaon office.

Mehta and Paun were produced in court on Sunday and were remanded in police custody till February 21.