A big fraud of Rs.590 crore has been reported in the Chandigarh branch of IDFC First Bank. As per reports, some employees of the bank at its Chandigarh branch were involved in fraudulent activities involving Rs 590 crore from accounts linked to the Haryana government.
Four Bank Employees have been placed under suspension, and an investigation is ongoing. “The Bank will pursue strict disciplinary, civil, and criminal action against the employees and other external individuals responsible, in accordance with applicable law,” said the bank. The Bank has sent recall request to certain beneficiary banks to lien mark balance in suspicious accounts held in these banks,” said the statement.
The bank is in the process of appointing an independent external agency to conduct an independent forensic audit.
Also Read: Left IAS and Married Politician, Bank Manager files Dowry Case against her Husband
The fraud was uncovered after the bank received a request from the Haryana Government for the closure of its account and the transfer of funds to another bank. In the process, certain discrepancies were observed in the amount mentioned vis-à-vis the balance in the account.
From February 18, 2026, certain Haryana government entities approached the bank regarding their respective accounts. During this process, discrepancies were noticed between the account balances held with the bank and those reported by the government entities.
However, the bank has clarified that the fraudulent activities were confined to a specific group of government-linked accounts within the Haryana Government operated through the said branch in Chandigarh and does not extend to other customers of the Chandigarh Branch.
Also Read: HDFC Bank Complaint Portal not working, How will customers file complaint?
Actions taken by IDFC First Bank in Chandigarh Fraud
- Four suspected officials have been placed under suspension pending investigation. The Bank will pursue strict disciplinary, civil and criminal action against the employees and other external individuals responsible, in accordance with applicable law.
- A meeting of the Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds (SCBMF) was convened on February 20, 2026 and the matter was placed before the Committee.
- The meeting of the Audit Committee and the Board of Directors were convened on February 21, 2026 to apprise on the matter.
- The Bank is in the process of appointing an independent external agency to conduct an independent Forensic Audit.
- The statutory auditors have been informed.
- 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.
Also Read: RBI Minutes of the Monetary Policy Committee Meeting Feb 2026
