Mumbai: The Economic Offences Wing (EOW) of the Mumbai Police continues to uncover shocking details in the ₹122 crore scam at New India Cooperative Bank. The latest investigation has revealed that the main accused, Hitesh Mehta, illegally disbursed bank funds as high-interest loans to depositors during the Covid-19 period in 2020.

According to EOW sources, many small traders suffered severe financial losses during the pandemic and were in urgent need of funds. Exploiting their vulnerability, Mehta provided them loans worth crores at exorbitant interest rates, bypassing legal banking procedures.

The EOW is now investigating the exact number of traders who received these unauthorized loans and the total amount disbursed. A senior EOW official stated that Mehta, a commerce graduate, joined the bank in 1987 and was later promoted to General Manager and Chief Accountant in 2002. He was set to retire in October this year, but his massive fraud was exposed beforehand.

Sources reveal that an EOW team will soon visit the Reserve Bank of India (RBI) to meet with senior officials. The purpose of the meeting is to understand why the RBI conducted a sudden inspection at the bank on February 12 and what triggered the surprise audit.

Additionally, EOW officials will seek a detailed report from the RBI and question why no action was taken earlier, despite financial irregularities occurring since 2019. The investigation is ongoing, and further revelations are expected in the coming days.