MUMBAI: IDFC First Bank Ltd reported a Rs 590 crore discrepancy in deposits held on behalf of the Haryana Government at its Chandigarh department, recognized 4 workers as suspects and suspended them pending investigation. The financial institution’s submitting comes after the state directed its departments to shut accounts with non-public lenders on February 18. The matter was escalated to the financial institution’s board at a unexpectedly convened assembly on February 21, after the lender filed a police grievance and knowledgeable regulators.It has additionally knowledgeable its statutory auditors and initiated the method of appointing an unbiased exterior company to conduct a forensic audit. In addition, recall requests have been despatched to sure beneficiary banks to lien-mark balances in suspicious accounts.The disclosure was made to the inventory exchanges below Regulation 30 of the SEBI Listing Regulations and has additionally been uploaded on the financial institution’s web site.Based on a preliminary inner evaluation, the financial institution mentioned the difficulty is confined to a particular group of Haryana Govt-linked accounts operated by way of the Chandigarh department and doesn’t prolong to different clients on the department. The mixture quantity below reconciliation throughout the recognized accounts is about Rs 590 crore. The eventual influence will rely upon validation of claims, recoveries, together with lien-marking of balances in beneficiary accounts maintained with different banks, liabilities of different entities concerned within the transactions, and the end result of authorized restoration proceedings.According to regional information experiences, the Haryana Government has directed the closure of all its accounts with particular non-public banks, primarily IDFC First Bank and AU Small Finance Bank, efficient February 18, 2026. Departments, boards, companies and universities should withdraw funds and shift to nationalised banks solely, with non-public financial institution accounts requiring prior finance division approval.The transfer de-empanels these banks from authorities enterprise amid suspected monetary irregularities, together with a Rs 590 crore fraud linked to IDFC’s Chandigarh department dealing with Haryana accounts. It enforces compliance with fund-parking pointers and month-to-month reconciliations to safeguard public cash.
