Bank Investigation Launched Following Panchkula Fixed Deposit Discrepancy

Haryana Municipal Corporation Faces Over Rs 150 Crore Discrepancy in Fixed Deposits​

Panchkula, March 25 – The Panchkula Municipal Corporation has uncovered discrepancies totaling over Rs 150 crore in its fixed deposits held with Kotak Mahindra Bank. This development follows a previous reported fraud at the Chandigarh branch of IDFC First Bank.

Investigation Uncovers Fraudulent Accounts​

According to an NDTV Profit report, the civic body invested funds in fixed deposit receipts (FDRs) at Kotak Mahindra Bank’s Sector 11 branch. The issue arose when the corporation requested the maturity amount of a Rs 58-crore deposit be transferred to its account. Initial bank records indicated successful completion of the transfer, but the funds were never received.
A subsequent investigation revealed that the bank statements themselves were fabricated, and the alleged funds had been diverted into fraudulent accounts. Officials determined that all the fixed deposits linked to this case were forged, with no actual money present in the accounts as reported.

Kotak Mahindra Bank Cooperates with Authorities​

Kotak Mahindra Bank stated it is cooperating with authorities and initiating a detailed reconciliation of the fixed deposits and related accounts following the municipal corporation's approach.

IDFC First Bank Fraud and Government Action​

Last month, IDFC First Bank disclosed a Rs 590 crore fraud at its Chandigarh branch. In an exchange filing on February 22, the private lender announced it would pursue strict disciplinary, civil, and criminal action against responsible employees and external individuals, in accordance with applicable law.
Following this disclosure, the Haryana Government de-empanelled IDFC First Bank and AU Small Finance Bank from handling government business with immediate effect.