New Delhi, Feb 22 (IANS) IDFC First Bank on Sunday disclosed a Rs 590 crore fraud at its Chandigarh branch involving Haryana government accounts, saying four suspected officials have been placed under suspension pending investigation.
The Bank said in an exchange filing that it will pursue strict disciplinary, civil and criminal action against the employees and other external individuals responsible, in accordance with applicable law.
The filing said that some employees at IDFC First Bank’s Chandigarh branch were involved in fraudulent activities involving Rs 590 crore from accounts linked to the Haryana government.
“The Bank has filed a complaint with the Police authorities and will extend full cooperation to the investigating agencies. The Bank has sent recall request to certain beneficiary banks to lien mark balance in suspicious accounts held in these banks,” according to the filing.
Additionally, the Bank is in the process of appointing an independent external agency to conduct an independent forensic audit.
According to the Exchange filing, the Bank received a request from a particular Department of Haryana Government for closure of its account and transfer of funds to another bank.
In the process, certain discrepancy were observed in the amount mentioned vis-a-vis the balance in the account.
“From February 18, 2026 onwards, certain other Haryana Government entities engaged with the Bank with regard to their respective accounts with the Bank. During this process, differences were observed between the balances in the account and the balances as mentioned by the said Haryana Government entities holding accounts with the Bank,” it further explained.
Based on the preliminary internal review conducted, the matter is confined to a specific group of government-linked accounts within Haryana Government operated through the said branch in Chandigarh and “does not extend to other customers of the Chandigarh Branch,” said the Bank.
The impact may be determined based on receipt of further information, validation of claims, recoveries of any nature including those made through the process of marking lien on fraudulent beneficiary accounts maintained with other Banks, liabilities of other entities involved in the fraudulent transactions, and the legal recovery process, said the Bank.
—IANS
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