IDFC First Financial institution stories Rs 590 crore fraud in Haryana authorities accounts

MUMBAI: IDFC First Financial institution Ltd reported a Rs 590 crore discrepancy in deposits held on behalf of the Haryana Authorities at its Chandigarh department, recognized 4 staff as suspects and suspended them pending investigation. The financial institution’s submitting comes after the state directed its departments to shut accounts with personal lenders on February 18. The matter was escalated to the financial institution’s board at a unexpectedly convened assembly on February 21, after the lender filed a police criticism and knowledgeable regulators.It has additionally knowledgeable its statutory auditors and initiated the method of appointing an unbiased exterior company to conduct a forensic audit. As well as, recall requests have been despatched to sure beneficiary banks to lien-mark balances in suspicious accounts.The disclosure was made to the inventory exchanges beneath Regulation 30 of the SEBI Itemizing Laws and has additionally been uploaded on the financial institution’s web site.Based mostly on a preliminary inner evaluation, the financial institution mentioned the problem is confined to a selected group of Haryana Govt-linked accounts operated by means of the Chandigarh department and doesn’t lengthen to different clients on the department. The combination quantity beneath reconciliation throughout the recognized accounts is about Rs 590 crore. The eventual impression will rely on validation of claims, recoveries, together with lien-marking of balances in beneficiary accounts maintained with different banks, liabilities of different entities concerned within the transactions, and the end result of authorized restoration proceedings.In accordance with regional information stories, the Haryana Authorities has directed the closure of all its accounts with particular personal banks, primarily IDFC First Financial institution and AU Small Finance Financial institution, efficient February 18, 2026. Departments, boards, companies and universities should withdraw funds and shift to nationalised banks solely, with personal financial institution accounts requiring prior finance division approval.The transfer de-empanels these banks from authorities enterprise amid suspected monetary irregularities, together with a Rs 590 crore fraud linked to IDFC’s Chandigarh department dealing with Haryana accounts. It enforces compliance with fund-parking pointers and month-to-month reconciliations to safeguard public cash.