Daijiworld Media Network - New Delhi
New Delhi, Feb 22: IDFC First Bank on Sunday reported a Rs 590 crore fraud at its Chandigarh branch involving accounts linked to the Government of Haryana. The bank said four officials suspected of involvement have been suspended pending further investigation.
In a regulatory filing, the private lender stated that it would initiate stringent disciplinary, civil, and criminal proceedings against the employees and any external parties found responsible, in accordance with applicable laws.
The disclosure noted that certain staff members at the Chandigarh branch were allegedly involved in fraudulent transactions concerning funds from Haryana government–related accounts. The irregularities came to light following a request from a department of the Haryana government seeking closure of its account and transfer of funds to another bank. During the process, discrepancies were detected between the stated transfer amount and the actual account balance.
The bank further revealed that from February 18, 2026, additional Haryana government entities approached it regarding their respective accounts. Subsequent reviews uncovered inconsistencies between the balances recorded by the bank and those cited by the account holders.
IDFC First Bank said it has lodged a formal complaint with police authorities and is cooperating fully with investigative agencies. It has also issued recall requests to certain beneficiary banks, seeking to lien-mark balances in accounts identified as suspicious.
To ensure transparency and accountability, the bank is in the process of appointing an independent external agency to conduct a forensic audit.
According to the preliminary internal review, the issue appears confined to a specific cluster of Haryana government–linked accounts operated through the Chandigarh branch and does not affect other customers at the branch.
The bank stated that the final financial impact will be assessed after further validation of claims, potential recoveries — including those through lien-marking of fraudulent beneficiary accounts in other banks — and the outcome of legal proceedings involving other entities connected to the transactions.