Kamal Ghorui
MUMBAI: IDFC First Bank Ltd reported a Rs 590 crore discrepancy in deposits held on behalf of the Haryana Government at its Chandigarh branch, identified four employees as suspects and suspended them pending investigation. The bank’s filing comes after the state directed its departments to close accounts with private lenders on February 18. The matter was escalated to the bank’s board at a hastily convened meeting on February 21, after the lender filed a police complaint and informed regulators.It has also informed its statutory auditors and initiated the process of appointing an independent external agency to conduct a forensic audit. In addition, recall requests have been sent to certain beneficiary banks to lien-mark balances in suspicious accounts.The disclosure was made to the stock exchanges under Regulation 30 of the SEBI Listing Regulations and has also been uploaded on the bank’s website.Based on a preliminary internal assessment, the bank said the issue is confined to a specific group of Haryana Govt-linked accounts operated through the Chandigarh branch and does not extend to other customers at the branch. The aggregate amount under reconciliation across the identified accounts is about Rs 590 crore. The eventual impact will depend on validation of claims, recoveries, including lien-marking of balances in beneficiary accounts maintained with other banks, liabilities of other entities involved in the transactions, and the outcome of legal recovery proceedings.According to regional news reports, the Haryana Government has directed the closure of all its accounts with specific private banks, primarily IDFC First Bank and AU Small Finance Bank, effective February 18, 2026. Departments, boards, corporations and universities must withdraw funds and shift to nationalised banks only, with private bank accounts requiring prior finance department approval.The move de-empanels these banks from government business amid suspected financial irregularities, including a Rs 590 crore fraud linked to IDFC’s Chandigarh branch handling Haryana accounts. It enforces compliance with fund-parking guidelines and monthly reconciliations to safeguard public money.
