Mumbai Police Calls CEO in Rs 122 Crore Embezzlement Probe

Mumbai police's Economic Offences Wing has summoned the CEO of Omkara ARC regarding a Rs 122 crore embezzlement case at New India Cooperative Bank involving NPAs. Omkara ARC states its adherence to legal processes while the EOW seeks clarity on the undervalued asset transactions.

The Economic Offences Wing of Mumbai police has taken a significant step in probing a Rs 122 crore embezzlement case linked to the New India Cooperative Bank by summoning the managing director and CEO of Omkara ARC. The investigative wing is looking into the sale of Non-Performing Assets (NPAs) to Omkara, which resulted in significantly lower recovery amounts for the bank.

Officials highlighted instances where assets mortgaged for loans were sold, but the returns to the bank were far below the loan amounts. One such loan, for Rs 30 crore, saw the bank receiving just Rs 2-3 crore post asset sale.

Omkara ARC, asserting its commitment to legal standards and transparency, claimed that all NPAs were acquired via legal public auctions dictated by market and asset quality norms. The company expressed readiness to engage with authorities to maintain trust in the financial system.

(With inputs from agencies.)