IDFC First Bank has publicly reported a suspected fraud worth approximately ₹590 crore at one of its Chandigarh branches, involving accounts linked to several departments of the Haryana government. The irregularities came to light in mid-February when a government department requested the bank to close an account and transfer its funds to another bank. This request revealed a discrepancy between the balance recorded in the bank’s system and the amount claimed by the account holder. Further checks involving other government-linked accounts uncovered similar mismatches, indicating the possibility of unauthorised and fraudulent activities.
Forensic Probe Into Chandigarh Branch Irregularities
In a regulatory filing made under stock-exchange disclosure rules, the bank stated that it has initiated an internal investigation and has suspended four branch officials who are currently the primary suspects. The bank also indicated that additional individuals or entities may have been involved. IDFC First Bank has informed the police authorities, filed formal complaints, and notified the banking regulator about the matter. It is also in the process of appointing an independent external agency to conduct a forensic audit to determine the full extent of the fraud and to assess whether other parties were complicit.
The bank clarified that the suspected fraudulent activities appear to be limited to certain government-related accounts at that specific branch and do not affect other customers. The final financial impact will depend on the validation of claims, potential recoveries, including efforts to place liens on suspicious balances held in other banks, and the outcome of legal recovery proceedings. The bank has stated that it will pursue strict disciplinary, civil, and criminal action against any employees or external parties found responsible, in accordance with applicable laws.
The incident has raised concerns about the effectiveness of internal controls and governance mechanisms in banks that manage large institutional accounts.
Follow The World Times for more such news.
