Panchkula | March 26, 2026 Close on the heels of the ₹590-crore banking fraud involving IDFC First Bank, another major financial irregularity has surfaced in Haryana, this time involving the Panchkula Municipal Corporation (MC). Discrepancies amounting to nearly ₹150 crore have been detected in fixed deposits (FDs) held with Kotak Mahindra Bank.
The matter has been referred to the Haryana State Vigilance and Anti-Corruption Bureau (ACB) for investigation, following the registration of a First Information Report (FIR) by Panchkula police on Wednesday. No arrests have been made so far.
Fraud Detected During FD Redemption
The irregularity came to light on Tuesday when the civic body sought to transfer a matured fixed deposit worth ₹58 crore, only to discover that the funds were missing.
“Some of the FDRs had been maintained with the bank for a long time. The discrepancy was identified when we requested a transfer upon maturity,” said Vinay Kumar, Commissioner of the Panchkula Municipal Corporation.
Subsequent internal checks revealed inconsistencies across multiple deposits, with the total suspected amount rising to approximately ₹150 crore.
Pattern Echoes Recent Banking Scam
The incident follows closely after a ₹590-crore fraud involving IDFC First Bank and AU Small Finance Bank in Chandigarh, where employees allegedly siphoned off public funds using fabricated debit memos and manipulated government accounts.
In the wake of that scam, the Haryana government had already de-empanelled certain private banks and tightened norms governing the handling of public funds.
Allegations of Forgery and Diversion
According to the FIR, the Panchkula MC had invested nearly ₹160 crore in fixed deposits at the bank branch over time. Investigators now suspect that bank officials, in collusion with others, created fictitious accounts and diverted funds through RTGS transfers.
The alleged fraud involved the use of forged signatures and counterfeit official seals of municipal authorities. To conceal the embezzlement, fabricated bank statements and paper records were reportedly supplied to the civic body, falsely indicating that the deposits remained intact.
The scheme unravelled when the MC attempted to redeem the ₹58-crore FD and discovered that the documents provided earlier were falsified and the actual account balances were depleted.
Authorities believe such large-scale fund diversion would likely have required active collusion between internal staff and banking personnel.
Bank Initiates Internal Review
In response, Kotak Mahindra Bank stated that it has initiated a detailed reconciliation of the MC’s fixed deposits and related accounts, in line with instructions received from the civic body.
A bank spokesperson said that, based on preliminary findings, account opening procedures, KYC documentation, authorised signatories, and transaction instructions appeared to be in compliance with established norms.
The bank added that a significant portion of the disputed amount has already been reconciled, with the remaining process ongoing. It also confirmed that it has filed a counter-complaint with the Panchkula police and is cooperating fully with investigative agencies.
Investigation Underway
With the case now under formal investigation by state vigilance authorities, the incident has raised fresh concerns over financial oversight, internal controls, and the safeguarding of public funds within municipal and banking systems.
.png)
The opinions posted here do not belong to 🔰www.indiansdaily.com. The author is solely responsible for the opinions.
As per the IT policy of the Central Government, insults against an individual, community, religion or country, defamatory and inflammatory remarks, obscene and vulgar language are punishable offenses. Legal action will be taken for such expressions of opinion.