Investigators looking into auditing lapses as RBI findings suggest large-scale cash disappearance
(Left) Hitesh Mehta, former general manager of the New India Co-operative Bank and the prime accused in the alleged scam, is produced in the Esplanade court on February 16. Pic/Ashish Raje
The Economic Offences Wing (EOW), investigating the New India Co-operative Bank (NICB) scam, has recorded statements from the bank’s auditors to understand how the missing funds went undetected. The agency is also verifying whether the NICB cash vault can hold between Rs 130 and Rs 133 crore, as the RBI claimed during an inspection, and if Rs 122 crore was indeed missing on February 12.
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EOW sources revealed that the bank has been under RBI supervision since 2019. The RBI flagged multiple irregularities, including a sharp rise in cash in hand, which reportedly peaked at Rs 150 crore without prompting an inspection. During its February 12 review, when the bank’s cash in hand was around Rs 130-Rs 133 crore, the RBI found Rs 112 crore missing from the Prabhadevi branch cash vault and Rs 12 crore unaccounted for at the Goregaon branch.
“Currently, we are verifying whether the cash was removed in one go or over a period of years, as claimed by the accused Hitesh Mehta, the former general manager of the bank. The RBI inspection showed that R112 crore was missing from the Prabhadevi cash vault, suggesting that the vault capacity might be around Rs 120 crore or more. We are checking if the vault indeed has such capacity.” an officer said.
The official added that the RBI has sealed the cash vault, and a panchnama (site inspection report) will soon be conducted with their assistance. Meanwhile, the EOW has recorded statements from individuals involved in the case. Both the bank’s and private auditors responsible for the concurrent audit are under scrutiny for failing to detect the missing funds. The EOW will also summon the bank directors for questioning after recording the statements of the CA and the auditors.
“We are investigating what exactly happened inside the bank. We expect the auditors and the CA to provide a clearer understanding of the discrepancies. If we find any irregularities from the higher-ups, we will summon them,” the officer said.
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