IDFC First Bank Reports ₹590 Crore Fraud at Chandigarh Branch Involving Haryana Government Accounts

Four Officials Suspended as Bank Initiates Criminal and Forensic Action​

New Delhi, February 22: IDFC First Bank has disclosed a fraud amounting to ₹590 crore at its Chandigarh branch, involving accounts linked to the Haryana government. The bank confirmed on Sunday that four suspected officials have been placed under suspension pending investigation.

In a regulatory filing, the bank stated that certain employees at its Chandigarh branch were involved in fraudulent activities concerning ₹590 crore from accounts associated with the Haryana government. The lender said it will pursue strict disciplinary, civil, and criminal action against the employees and any external individuals found responsible, in accordance with applicable law.

Police Complaint Filed, Recall Requests Sent to Beneficiary Banks​

The bank has filed a formal complaint with police authorities and assured full cooperation with investigating agencies. It also sent recall requests to certain beneficiary banks, asking them to mark balances in suspicious accounts linked to the transactions.

Additionally, the bank is appointing an independent external agency to conduct a forensic audit to assess the matter in detail.

Discrepancies Flagged During Account Closure and Fund Transfer Process​

According to the filing, the issue came to light after the bank received 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 noticed between the amount mentioned in the transfer request and the balance available in the account.

From February 18, 2026 onwards, other Haryana government entities also engaged with the bank regarding their respective accounts. During these interactions, differences were observed between the balances in the accounts and the figures cited by the concerned government entities.

Fraud Limited to Specific Government-Linked Accounts​

Based on a preliminary internal review, the bank clarified that the matter is confined to a specific group of government-linked accounts operated through the Chandigarh branch. It emphasized that the issue does not extend to other customers of the branch.

Financial Impact Yet to Be Determined​

The bank stated that the financial impact will be determined after further information is received, claims are validated, and recovery efforts progress. Recoveries may include marking lien on fraudulent beneficiary accounts maintained with other banks, along with pursuing liabilities of other entities involved in the transactions and initiating legal recovery processes.

The investigation remains ongoing as the bank works with authorities to assess the full scope of the fraud and secure potential recoveries.