IDFC First Bank Uncovers ₹590 Crore Fraud at Chandigarh Branch

IDFC First Bank has reported unauthorized and fraudulent activities amounting to approximately ₹590 crore at its Chandigarh branch, involving accounts linked to the Haryana government. The bank has suspended four employees pending investigation and is initiating strict disciplinary, civil, and criminal actions against those responsible, in accordance with applicable law.

The fraudulent activities came to light after the bank received a request from a Haryana government department to close its account and transfer funds to another bank. During this process, discrepancies were observed between the mentioned amounts and the actual balances. Subsequent engagements with other Haryana government entities revealed further inconsistencies between the account balances held with the bank and those reported by the government entities.

The bank has filed a complaint with the police and is cooperating fully with the investigating agencies. Additionally, an independent external agency is being appointed to conduct a forensic audit. The bank has also sent recall requests to certain beneficiary banks to lien mark balances in suspicious accounts held in these banks.

Based on a preliminary internal review, the fraudulent activities are confined to a specific group of government-linked accounts within the Haryana government operated through the Chandigarh branch and do not extend to other customers of the branch. The financial impact will be determined upon receipt of further information, validation of claims, recoveries, and the outcome of the legal recovery process.