New Delhi: In a massive development, the IDFC First Bank, a private bank, has reported a fraud of around Rs 590 crore in which certain employees and others are involved in accounts linked to the Haryana government. News agency PTI has reported that the bank has informed the banking regulator after finding out the issue and has also filed a police complaint.

The discovery of the fraud

The bank said in a regulatory filing on early Sunday that it found unauthorised and fraudulent activities at a specific branch in Chandigarh. The issue took place in some account which are related to the Haryana government and the bank suspects that the case may involve other individuals or entities.

The bank revealed in a filing with the BSE that it discovered the fraud after a preliminary internal assessment. The customers who have been impacted include a specific group of government-linked accounts within Haryana Government that are operated in the Chandigarh branch.

Steps taken by the bank

The bank received a request from a particular department of Haryana Government for closure of its account and transfer of funds to another bank when it observed certain “discrepancy in the amount mentioned vis-à-vis the balance in the account.” The bank is yet to determine the time of the fraud and there will be an external independent examination. The fraud potentially involves collusion with other individuals or entities or counterparties.

The bank has informed the Reserve Bank of India about the incident and filed a police complaint. Also, it has suspended four officials pending investigation and has assured that strict action will be taken against those responsible. The IDFC bank has sent recall requests to beneficiary banks and asked them to mark liens on suspicious accounts.