Private lender IDFC First Bank has disclosed a Rs 590-crore fraud allegedly dedicated by its staff, “potentially” involving others, in accounts held by the Haryana Government at its Chandigarh department. This comes following an inside evaluation by the financial institution after it obtained a communication on this regard from the state authorities.
Acting on the disclosure, the state Finance Department has issued detailed instructions delisting two banks — IDFC First and AU Small Finance Bank — for presidency enterprise with fast impact. Further, all state departments have been requested to shut down their accounts in these banks and switch funds to different banks.
While official sources say the Crime Branch has been requested to look into the matter, the federal government is contemplating an FIR on this regard.
Shift all a/cs to PSU banks: Finance Dept
- De-empanel IDFC First Bank & AU Small Finance Bank
- Close all accounts, switch funds from these banks
- Depts to open accounts
- solely in nationalised banks
- Nod should if a/cs to be opened in personal/company banks
- Funds to be positioned in versatile deposits providing greater charges of curiosity
- Boards/companies/depts to reconcile all accounts by March 31
The matter got here to mild after the financial institution, in a communique to the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE), yesterday mentioned it had obtained a request from the state Development and Panchayats Department for closure of its accounts and switch of funds to a different financial institution. Subsequently, a mismatch was discovered on February 18 within the account stability and the balances talked about by the division holding these accounts.
“The aggregate amount under reconciliation across the identified accounts at the branch is Rs 590 crore,” the financial institution mentioned, including that 4 suspected officers had been positioned beneath suspension pending investigation, an unbiased exterior company would conduct an audit whereas a criticism with the police had already been filed.
Sources within the authorities mentioned an inside letter from the division pointed to irregularities in two accounts opened in IDFC First Bank and AU Small Finance Bank beneath the MMGAY-2.0 (Mukhya Mantri Gramin Awas Yojana) scheme. On examination of detailed statements, unauthorised transactions had been present in each accounts in credit score and debit entries regardless of no such directions.
The letter talked about that comparable unauthorised transactions passed off within the accounts of two different departments. The state authorities has constituted a committee to conduct an inquiry.
The Finance Department has instructed Administrative Secretaries to open accounts solely in nationalised banks and search prior permission of the division if accounts are to be opened in a company or personal financial institution.
Any accounts opened with out adhering to the laid down process will probably be thought of “irregular and liable to immediate closure”. Non-compliance of the orders will invite administrative and monetary motion beneath authorities guidelines, the division has mentioned. The Finance Department has additionally requested all boards, companies and departments to reconcile their financial institution accounts in accordance with the desired norms by March 31.
