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Kotak Mahindra Bank is facing an alleged fraud involving missing fixed deposits linked to Haryana’s Panchkula Municipal Corporation
Kotak Mahindra Bank
Kotak Mahindra Bank is facing an alleged fraud involving missing fixed deposits linked to Haryana’s Panchkula Municipal Corporation.
The private lender has filed an FIR and initiated a detailed reconciliation of fixed deposits and associated accounts of the civic body. The bank maintained that all accounts and transactions were handled in accordance with due process and regulatory norms.
“Some of the FDRs had been with the bank for a long time at the Panchkula branch. The discrepancy came to light when the bank was asked to transfer funds after the maturity of one of the deposits,” Vinay Kumar, Commissioner of the Panchkula Municipal Corporation, told PTI on March 24.
According to a report by CNBC Awaaz, the alleged fraud could be around Rs 160 crore. At around 12:40 pm on March 25, shares of Kotak Mahindra Bank were trading marginally higher by 0.3% at Rs 367.85 apiece.
In a statement, a spokesperson for the bank said that, following instructions from the Municipal Corporation, it undertook a comprehensive reconciliation exercise of fixed deposits and linked accounts. Based on records reviewed so far, the bank said all account opening procedures, KYC documentation, authorised signatories and instructions were found to be in order, with transactions carried out in line with applicable banking norms.
The bank added that a significant portion of the amounts under review has already been reconciled, with the process continuing. It also confirmed that a formal complaint has been filed with the Panchkula Police and that it is cooperating fully with the Municipal Corporation, government authorities and law enforcement agencies.
The development comes close on the heels of a separate case involving IDFC First Bank, which recently disclosed a Rs 590 crore fraud linked to certain employees and accounts associated with a Haryana government department at its Chandigarh branch.
IDFC First Bank had clarified that the issue was limited to a specific set of government-linked accounts and did not affect other customers. The discrepancy came to light after a government department requested closure of its account and transfer of funds, during which mismatches were identified. The total discrepancy was pegged at Rs 590 crore, including an additional Rs 100 crore uncovered by the bank during its review.
March 25, 2026, 2:12 PM IST
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