Mumbai court remands New India Co-operative Bank accused to five-day police custody

Mumbai Court Sends New India Co-operative Bank Scam Accused to 5-Day Police Custody

In a significant development in the alleged ₹100-crore fraud case involving New India Co-operative Bank, a Mumbai court on Wednesday remanded prime accused Vikram Mehta (name changed) to five days of police custody. The Economic Offences Wing (EOW) had arrested Mehta yesterday after uncovering financial irregularities that allegedly duped hundreds of depositors over several years.  

According to investigators, Mehta, a former director of the bank, allegedly orchestrated a complex web of fraudulent loans and siphoned off funds through shell companies. "The accused manipulated account books, approved dubious loans to non-existent entities, and transferred funds to personal accounts," revealed an EOW officer involved in the probe.  

The scam came to light when multiple account holders complained about being unable to withdraw their savings. A preliminary audit uncovered massive discrepancies, prompting the RBI to initiate an investigation. "We've traced at least ₹42 crore to benami transactions so far, but the total fraud could be much larger," the officer added.  

During the hearing, the prosecution argued for extended custody, stating, "The accused needs to be interrogated about money trails, accomplices, and documents we've seized from his residence." The defense countered that Mehta was cooperating and that custodial interrogation wasn't necessary.  

Special Judge Rina Sharma, while granting police custody, observed, "Considering the magnitude of the fraud and the need to recover public funds, thorough investigation is imperative."  

Outside the court, anxious depositors gathered, many of whom are senior citizens. "This was my life's savings. I trusted the bank because it had 'co-operative' in its name," said 68-year-old former teacher Usha Patil, clutching her passbook.  

The EOW has formed a special team to track the laundered money and identify other beneficiaries. Officials confirmed they're scrutinizing property documents and foreign transactions linked to the case.  

Financial experts warn this case highlights vulnerabilities in urban co-operative banks. "Depositors must verify a bank's RBI ratings and audit reports, regardless of how trustworthy it appears," cautioned banking analyst Neelam Kapoor.  

As investigators race against time to follow the money trail, the court has scheduled the next hearing for Monday, when police will present their findings. For hundreds of affected account holders, the wait for justice—and hopefully their money—continues.