IDFC First Bank revealed a Rs 590 crore fraud at its Chandigarh branch related to Haryana government accounts. The bank has suspended four suspected officials pending investigation and plans to take strict disciplinary, civil, and criminal actions against those responsible.
The fraudulent activities at IDFC First Bank’s Chandigarh branch involved Rs 590 crore from accounts linked to the Haryana government. The bank has lodged a complaint with the police and is cooperating with investigating agencies. It has also requested certain beneficiary banks to mark the balance in suspicious accounts.
Moreover, IDFC First Bank is in the process of appointing an independent external agency to conduct a forensic audit. The bank received a closure request from a Haryana government department for its account transfer, leading to the discovery of discrepancies in the account balance.
According to the bank’s exchange filing, discrepancies were noticed in the balances of Haryana government entities’ accounts with the bank. The issue is limited to a specific group of government-linked accounts within Haryana Government operated through the Chandigarh branch and does not affect other customers of the branch.
The impact of the fraud will be assessed based on further information, validation of claims, recoveries, liabilities of entities involved, and the legal recovery process. IDFC First Bank is actively working to address the situation and ensure accountability.
