Mumbai: The Mumbai police are questioning New India Cooperative Bank's General Manager and Head of Accounts, Hitesh Mehta, on Saturday after a case was registered against him and his associates for allegedly embezzling Rs 122 crore of the bank's funds, officials said.

The Reserve Bank of India (RBI) on Friday superseded the cooperative bank's board for a year and appointed an administrator to manage its affairs. A day prior to that, it imposed several restrictions on the lender, including on withdrawal of funds by depositors, citing supervisory concerns emanating from the recent material developments in the bank, and to protect the interest of its depositors.

Based on a complaint against Mehta and others, police registered a case in the wee hours of Saturday, which was then transferred to the Economic Offences Wing (EOW) for investigation, an official said.

"Mehta has been brought to the EOW office in south Mumbai and he is being questioned by its officials," he said.

Acting Chief Executive Officer of the bank, Devarshi Ghosh, on Friday approached the Dadar police station in central Mumbai and lodged a complaint of misappropriation against Mehta and others, he said.

"As per the complaint, Mehta along with other associates hatched a conspiracy and embezzled Rs 122 crore from the safes of Prabhadevi and Goregaon offices of the bank," he said.

Based on the complaint, a case under the Bharatiya Nyaya Sanhita (BNS) sections 316 (5) (criminal breach of trust by public servants, bankers, and others in positions of trust), 61(2) (criminal conspiracy) was registered, he said, adding that the case was then transferred to the EOW considering its scope.

New India Cooperative Bank has 28 branches and most of them are located in Mumbai, while two are in Surat in neighbouring Gujarat and one in Pune.

The RBI's action against the bank triggered panic among its customers, who thronged its branches since morning on Friday hoping to access their savings, but were denied entry into the premises.