New India Cooperative Bank Scandal: A Deep Dive into the Rs 122-Crore Loan Controversy
MUMBAI: In a shocking revelation, the New India Cooperative Bank’s general manager, Hitesh Mehta, was arrested in connection with a staggering Rs 122-crore scam. Just two days post-arrest, police investigations uncovered that Mehta had allegedly sanctioned a loan of Rs 40 crore to a Malad businessman, Unnathan Arunachalam, who is currently evading capture.
Details of the Allegations
According to reports by Mateen Hafeez, the Economic Offences Wing (EOW) has issued a Look Out Circular (LOC) against Arunachalam, also known as Arunbhai, a businessman in his 50s who operates a solar panel venture. Furthermore, Mehta is implicated in another substantial loan of Rs 70 crore issued to builder Dharmesh Paun, who has also been arrested in the unfolding case.
Investigative Insights
As investigators delve deeper, they are now focused on tracing the remaining Rs 12 crore linked to this scandal. A police source indicated that when questioned about his lending decisions, Mehta acknowledged providing Rs 40 crore to Arunbhai. The ongoing interrogation aims to clarify the rationale behind such significant financial transactions.
Impact on the Banking Sector
This incident raises serious concerns about governance and oversight within cooperative banks, especially regarding the approval processes for large loans. The repercussions of this scandal could potentially ripple through the financial sector, urging regulatory bodies to tighten controls and promote transparency.
Stay Informed with Looffers.com
For more insights into financial news and trends, stay connected with Looffers.com. We bring you the latest updates and expert analyses to keep you informed and ahead in the world of finance.
