On paper, everything seemed in order. The safes of New India Cooperative Bank&mdash;protected by layers of security and trusted hands&mdash;held what was meant to be the institution&rsquo;s financial backbone. But behind closed doors, one man allegedly held the key to a vanishing fortune. &nbsp;
For years, Hitesh Mehta, the bank&rsquo;s former General Manager and Head of Accounts, had unfettered access to its reserves. According to Mumbai Police&rsquo;s Economic Offences Wing (EOW), Mehta didn&rsquo;t need elaborate digital manipulation or complex financial instruments to siphon off money. Instead, he allegedly used a far simpler method: direct withdrawals from the bank&rsquo;s own safes. &nbsp;
Cash on Call
Investigators say Mehta would summon two bank employees, instructing them to open the safes and withdraw large sums&mdash;₹50 lakh at a time. The cash, once counted, was handed over to individuals sent by him.
If anyone questioned the process, they didn&rsquo;t push too hard. Mehta&rsquo;s word carried weight. And in a system where authority often overrides accountability, the withdrawals continued. &nbsp;
Cracks in the Vault
The scheme might have remained buried had it not been for an RBI audit. What was supposed to be a routine check turned into a financial autopsy, revealing a staggering shortfall. The bank&rsquo;s safes, expected to hold ₹138 crore, were found nearly empty. ₹122 crore was missing. &nbsp;
Investigators still aren&rsquo;t sure if this happened all at once, or over an extended period. &nbsp;
The findings triggered an immediate response. Mehta, along with real estate developer Dharmesh Paun&mdash;believed to be a key beneficiary&mdash;was arrested. Both remain in police custody as investigators piece together how long the siphoning went undetected and who else, if anyone, might have played a role. &nbsp;
Warnings Ignored?
As details emerge, one question looms large: How did this happen in plain sight? A former bank employee had reportedly flagged concerns about financial mismanagement in a letter to the RBI. Rising non-performing assets (NPAs) hinted at deeper structural rot. Yet, the alarm bells were either ignored or rang too softly for action. &nbsp;
Authorities are now scrutinizing audit reports, questioning why these irregularities weren&rsquo;t flagged earlier. The possibility of unsecured loans&mdash;especially during the COVID-19 pandemic&mdash;adds another layer to the case. Investigators believe depositors&rsquo; funds may have been funnelled to traders outside banking protocols, compounding the financial damage. &nbsp;
The Aftermath
The fallout has been swift. The RBI has superseded the bank&rsquo;s board, freezing withdrawals and appointing an administrator. A Committee of Advisors has been tasked with overseeing the institution&rsquo;s recovery. For depositors, uncertainty lingers&mdash;₹122 crore is gone, and the system meant to protect their money has failed them. &nbsp;
The case is still unfolding, but one thing is clear: banking scams don&rsquo;t always rely on high-tech cyber fraud or elaborate shell companies. Sometimes, all it takes is unchecked power, misplaced trust, and a key to the safe.

Banking scams aren't always high tech cyber fraud

The New India Cooperative Bank case is ongoing and what we know so far is gripping

The Quiet Heist: How ₹122 Cr Vanished

The New India Cooperative Bank case is ongoing and what we know so far is gripping

February 21, 2025 | 10:51 IST