4 Officials Suspended
In a major disclosure on Sunday, IDFC First Bank revealed a ₹590 crore fraud involving Haryana government accounts at its Chandigarh branch. The bank immediately suspended four officials suspected of involvement as investigations began.
How the Fraud Surfaced
The discrepancy came to light when a department of the Haryana Government requested to close its account and transfer funds to another bank. During the process, bank officials noticed a significant mismatch between the recorded balance and the actual funds available.
From February 18, 2026, other Haryana government entities reported similar inconsistencies in their account statements.
Bank Takes Decisive Action
IDFC First Bank has initiated several high-priority measures to contain the situation:
- Employee Suspension: The bank placed four officials under immediate suspension pending a full inquiry.
- Legal Proceedings: Management filed a formal complaint with police authorities and pledged full cooperation with investigating agencies.
- Fund Recovery: The bank sent “recall requests” to various beneficiary banks, asking them to lien mark (freeze) balances in suspicious accounts.
- Forensic Audit: IDFC First is currently appointing an independent external agency to conduct a comprehensive forensic audit of the transactions.
Scope of the Impact
The bank clarified that the fraudulent activity appears localized. Preliminary internal reviews suggest the matter is:
- Confined to a specific group of government-linked accounts within the Haryana Government.
- Isolated to the Chandigarh branch.
- Not a threat to other retail or corporate customers of the branch.
“The Bank will pursue strict disciplinary, civil, and criminal action against the employees and external individuals responsible,” the bank stated in its official exchange filing.
What Happens Next?
The final financial impact remains undetermined. The bank’s recovery strategy relies on validating claims, recovering diverted funds from beneficiary accounts at other banks, and pursuing the legal recovery process against all involved parties.
