IDFC First Bank reports Rs 590 crore fraud in Haryana government accounts

MUMBAI: IDFC First Bank Ltd reported a Rs 590 crore discrepancy successful deposits held connected behalf of the Haryana Government astatine its Chandigarh branch, identified 4 employees arsenic suspects and suspended them pending investigation.

The bank’s filing comes aft the authorities directed its departments to adjacent accounts with backstage lenders connected February 18. The substance was escalated to the bank’s committee astatine a hastily convened gathering connected February 21, aft the lender filed a constabulary ailment and informed regulators.It has besides informed its statutory auditors and initiated the process of appointing an autarkic outer bureau to behaviour a forensic audit.

In addition, callback requests person been sent to definite beneficiary banks to lien-mark balances successful suspicious accounts.The disclosure was made to the banal exchanges nether Regulation 30 of the SEBI Listing Regulations and has besides been uploaded connected the bank’s website.Based connected a preliminary interior assessment, the slope said the contented is confined to a circumstantial radical of Haryana Govt-linked accounts operated done the Chandigarh subdivision and does not widen to different customers astatine the branch.

The aggregate magnitude nether reconciliation crossed the identified accounts is astir Rs 590 crore. The eventual interaction volition beryllium connected validation of claims, recoveries, including lien-marking of balances successful beneficiary accounts maintained with different banks, liabilities of different entities progressive successful the transactions, and the result of ineligible betterment proceedings.According to determination quality reports, the Haryana Government has directed the closure of each its accounts with circumstantial backstage banks, chiefly IDFC First Bank and AU Small Finance Bank, effectual February 18, 2026.

Departments, boards, corporations and universities indispensable retreat funds and displacement to nationalised banks only, with backstage slope accounts requiring anterior concern section approval.The determination de-empanels these banks from authorities concern amid suspected fiscal irregularities, including a Rs 590 crore fraud linked to IDFC’s Chandigarh subdivision handling Haryana accounts. It enforces compliance with fund-parking guidelines and monthly reconciliations to safeguard nationalist money.