IDFC First Bank Reports ₹590 Crore Fraud at Chandigarh Branch Involving Haryana Government Accounts
Chandigarh: IDFC First Bank has disclosed a fraud amounting to ₹590 crore at its Chandigarh branch, involving accounts linked to the Haryana Government. The bank said certain employees were involved in fraudulent activities related to government-linked accounts.
Fraud Detected During Account Closure Request
The fraud came to light after the Haryana Government requested closure of its account and transfer of funds to another bank. During the process, the bank identified discrepancies between the reported balance and the actual funds available, prompting further investigation.
Limited to Specific Government-Linked Accounts
The bank clarified that the fraudulent activity was confined to a specific group of Haryana Government-linked accounts operated through its Chandigarh branch. It emphasised that no other customer accounts at the branch or elsewhere in the bank were affected.
Forensic Audit Underway
IDFC First Bank said it is in the process of appointing an independent external agency to conduct a forensic audit to determine the full scope of the fraud and identify those responsible. The bank is also expected to strengthen internal controls to prevent similar incidents in the future.
The disclosure marks a significant fraud case involving government-linked accounts and has raised concerns about internal oversight and financial safeguards.