Updated 22 February 2026 at 19:15 IST
Rs 590 Crore Fraud Detected In Haryana Govt-Linked Accounts At IDFC First Bank, 4 Suspended
IDFC First Bank has flagged Rs 590 crore fraud in accounts linked to Haryana government employees in one of its branches in Chandigarh. The bank has been de-empanelled for government business in Haryana with immediate effect till further orders.
Chandigarh: IDFC First Bank has flagged Rs 590 crore fraud in accounts held by certain departments of the Haryana government at one of its branches in Chandigarh. Following the disclosure, the state government de-empanelled IDFC First Bank and AU Small Finance Bank for government business with immediate effect till further orders.
The bank released a statement, saying, “The bank has identified an incident involving unauthorised and fraudulent activities by certain employees at a particular branch in Chandigarh and potentially involving other individuals/entities/counterparties.” Four suspected officials have been placed under suspension, pending investigation. The bank stated that it will pursue strict disciplinary, civil and criminal action against the employees and other external individuals responsible, in accordance with applicable law.
The bank has also filed a complaint with the police, stating they will extend full cooperation to the investigating agencies. The bank is aslo set to appoint an independent external agency to conduct an independent forensic audit.
Meanwhile, the Haryana government de-empanelled the bank, saying, “No government funds shall henceforth be parked, deposited, invested, or transacted through these banks. All concerned departments/organisations shall take immediate action for transfer of balances and closure of accounts maintained with the above banks.”
Published By : Nidhi Sinha
Published On: 22 February 2026 at 18:48 IST