Mumbai: A major financial irregularity has been reported at Kotak Mahindra Bank’s Panchkula branch in Haryana. The Panchkula Municipal Corporation has found discrepancies of over Rs 150 crore linked to its fixed deposits with the bank.
The issue has raised serious concerns about internal controls and fund safety.
How the Issue Was Detected?
The problem surfaced when the municipal corporation asked the bank to transfer the maturity amount of a Rs 58 crore fixed deposit into its account.
Bank records initially showed that the transfer was completed. However, the money never reached the corporation’s account, raising suspicion.
Fake Records and Missing Funds
Upon further investigation, officials discovered that the bank statement provided was fake. The funds were allegedly diverted into fraudulent accounts.
It was later found that all fixed deposits linked to the case were forged. Officials said there was no actual money present in these accounts, pointing to a large-scale fraud.
Bank’s Response and Probe
Kotak Mahindra Bank said it is cooperating with authorities and has started a detailed internal review. The bank is reconciling all fixed deposits and related accounts after being approached by the municipal body.
Officials believe the total fraud amount could exceed Rs 150 crore as the investigation continues.
Similar Case Raises Concerns
This development comes just a month after a Rs 590 crore fraud was reported at IDFC First Bank’s Chandigarh branch.
Following that case, the Haryana government had de-empanelled IDFC First Bank and AU Small Finance Bank from handling government business.
Rising Concerns in Banking System
These back-to-back cases have raised concerns over fraud detection systems in banks, especially in handling government funds. Experts say stricter monitoring and verification processes are needed to prevent such incidents.
