IDFC First Bank Suspends 4 in ₹590 Cr Fraud Linked to Haryana Govt Accounts

IDFC First Bank on Sunday revealed that certain employees at one of its branches in Chandigarh were allegedly involved in unauthorised and fraudulent transactions amounting to ₹590 crore from accounts linked to the Haryana government.

In a regulatory filing, the bank said the issue came to light after it received a request from a department of the government of Haryana to close its account and transfer the funds to another bank. During this process, the bank noticed discrepancies between the amount mentioned in the request and the actual balance in the account.

The lender further said that from February 18, 2026 onwards, other Haryana government entities also approached the bank regarding their respective accounts. While reviewing these accounts, the bank found differences between the balances recorded in its system and the amounts stated by the account-holding entities.

According to a preliminary internal review, the suspected irregularities are limited to a specific group of Haryana government-linked accounts operated through the Chandigarh branch. The bank clarified that the issue does not affect other customers of the branch.

IDFC First Bank said the final financial impact is not clear yet. It will depend on more information, checking the claims made, and how much money can be recovered.

The bank said it may try to recover the funds by freezing suspicious accounts in other banks, holding other parties involved responsible for their role in the transactions, and taking legal action to get the money back.

Following the discovery, the bank suspended four officials suspected to be involved in the matter. It said it would take strict disciplinary, civil and criminal action against both employees and any external individuals found responsible, in line with the law.

The bank had also convened a meeting of Special Committee of the Board for Monitoring and Follow-up of Cases of Frauds (SCBMF) on February 20, 2026, where the matter was presented. Meetings of the Audit Committee and the Board of Directors were also held on February 21, 2026 to brief them on the situation.

The lender is in the process of appointing an independent external agency to carry out a forensic audit. It has also filed a complaint with the police and said it will fully cooperate with investigating authorities.

Additionally, the bank has sent recall requests to certain beneficiary banks, asking them to mark liens on balances in suspicious accounts held with them as part of efforts to prevent further fund movement and aid recovery.