New Delhi, February 22, 2026 — IDFC First Bank on Sunday disclosed a suspected fraud of Rs 590 crore at its Chandigarh branch involving accounts linked to the Haryana government, and said four employees have been suspended pending investigation. The bank said it will pursue disciplinary, civil and criminal action against those responsible.
In an exchange filing, the bank said some branch staff were implicated in the fraudulent activity involving government accounts. It has filed a complaint with police and will fully cooperate with investigative agencies, the filing added.
“The Bank has filed a complaint with the Police authorities and will extend full cooperation to the investigating agencies. The Bank has sent recall request to certain beneficiary banks to lien mark balance in suspicious accounts held in these banks,” the filing said, indicating steps to restrict movement of the suspected funds.
IDFC First Bank also said it is appointing an independent external agency to conduct a forensic audit to establish the facts and assess losses. The bank warned that legal and recovery actions will follow based on the audit and investigation outcomes.
The issue came to light after a Haryana government department asked the bank to close an account and transfer its funds to another bank. During that process, the bank observed discrepancies between the amount cited by the department and the actual account balance. “From February 18, 2026 onwards, certain other Haryana Government entities engaged with the Bank with regard to their respective accounts with the Bank. During this process, differences were observed between the balances in the account and the balances as mentioned by the said Haryana Government entities holding accounts with the Bank,” the filing said.
A preliminary internal review concluded the matter appears confined to a specific group of government-linked accounts handled through the Chandigarh branch and “does not extend to other customers of the Chandigarh Branch,” the bank said.
The ultimate impact will depend on further information, validation of claims, recoveries — including through lien marking of beneficiary accounts at other banks — liabilities of other parties involved, and the progress of legal recovery processes. —IANS
Original Source: https://theshillongtimes.com/2026/02/22/idfc-first-bank-discloses-rs-590-crore-fraud-at-chandigarh-branch-4-officials-under-scanner/
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Publish Date: 2026-02-22 12:30:00
