Haryana Municipal Corporation Uncovers Rs 150 Crore Fraud Involving Kotak Mahindra Bank

The Panchkula Municipal Corporation in Haryana has revealed a shocking financial irregularity involving over Rs 150 crore in fixed deposits with Kotak Mahindra Bank. This discovery follows a recent fraud case at IDFC First Bank, raising concerns about banking practices in the region. Investigations indicate that the funds were allegedly diverted to fraudulent accounts, with the bank cooperating with authorities to resolve the issue. As the probe continues, more details are expected to emerge, highlighting the need for stringent oversight in financial institutions.

By Narendra Chaudhary Mar 25, 2026, 15:36 IST

Significant Financial Irregularity in Haryana

In a startling revelation, the Panchkula Municipal Corporation in Haryana has identified discrepancies exceeding Rs 150 crore in its fixed deposits with Kotak Mahindra Bank. This alarming discovery follows a recent report of a Rs 590-crore fraud at the Chandigarh branch of IDFC First Bank.

The municipal body had placed its funds in fixed deposit receipts (FDRs) at the bank's Sector 11 branch. The issue came to light when the corporation sought the maturity amount of a Rs 58-crore deposit to be transferred to its account.

Initially, bank records indicated that the transfer was successful; however, the funds never arrived in the corporation's account. A thorough investigation uncovered that the bank statement was fraudulent, and the money had been allegedly redirected to fake accounts.

Further inquiries revealed that all fixed deposits associated with this case were fabricated, with no actual funds existing in the accounts, according to reports.

In response to these developments, Kotak Mahindra Bank stated that it is collaborating with authorities and has initiated a comprehensive reconciliation of the fixed deposits and related accounts after being contacted by the municipal corporation.

Officials estimate that the total discrepancy could surpass Rs 150 crore, with more information expected to surface as the investigation continues.

Additionally, last month, IDFC First Bank reported a fraud of Rs 590 crore at its Chandigarh branch. In a filing on February 22, the bank announced its intention to take strict disciplinary, civil, and criminal action against those responsible, in accordance with the law.

On the same day, the Haryana Government removed IDFC First Bank and AU Small Finance Bank from handling government business immediately following the revelation of the alleged fraud.