Kotak Mahindra Bank Ltd. has lodged a formal complaint with the Panchkula police following the Panchkula municipal corporation’s identification of inconsistencies in Fixed Deposit Receipts (FDRs) associated with the private lender.
The bank is currently undertaking a comprehensive reconciliation process and asserts that it is fully cooperating with all relevant authorities.
According to media reports, the irregularity surfaced when the Panchkula municipal corporation instructed Kotak Mahindra Bank to transfer funds upon the maturity of a fixed deposit, only for the bank to discover that the funds were unavailable.
Further inquiries indicated similar discrepancies among multiple FDRs, with the total amount under investigation reportedly close to ₹150 crore.
The issue has since been escalated to the Haryana State Vigilance Bureau.
In a statement provided to CNBC-TV18, a spokesperson for Kotak Mahindra Bank remarked, “Following directives from the municipal corporation of Panchkula, Kotak Mahindra Bank commenced an extensive reconciliation of fixed deposits and associated bank accounts maintained by the municipal corporation.”
As part of this initiative, and based on the records reviewed thus far, Kotak Bank stated that all account opening procedures, KYC documentation, authorized signatories, and instructions received from the municipal corporation were in alignment, and that the accounts and transactions were executed in strict compliance with due process and relevant banking standards.
“A significant portion of the amounts under review has already been reconciled with the municipal corporation, and the reconciliation process is ongoing in a systematic manner,” the statement elaborated.
“Additionally, in order to uphold its governance standards and ensure an independent and thorough examination of the matter, the Bank has formally filed a complaint with the Panchkula police. The Bank is fully cooperating with the municipal corporation, government authorities, and law enforcement agencies in this inquiry.”
This development arrives shortly after a much larger fraud case at IDFC First Bank, involving ₹597 crore linked to Haryana government accounts at its Chandigarh branch, where the Enforcement Directorate has conducted raids at 19 locations.
In response, IDFC First Bank settled the fraud case by paying ₹645 crore (including interest) to Haryana government departments, confirming reconciled accounts with no further discrepancies, while four individuals, including former employees, were arrested in connection with the case.
