Following the recent ₹590 crore fraud at IDFC First Bank, another banking scam has come to light in Haryana. The Panchkula Municipal Corporation (MC) had deposited ₹160 crore in a fixed deposit (FD) at Kotak Mahindra Bank. When the FD matured and officials attempted to claim the funds, they discovered that the money had been transferred to a fake account. The bank statements provided to the MC were also found to be forged.
Collusion Suspected Between Bank, MC Staff
Sources indicate that Kotak Mahindra Bank officials and employees allegedly transferred the FD amount into fake accounts while presenting only paper records to the MC. There are suspicions that some municipal officials and bank staff may have colluded in the fraud.
The MC has initiated the process to file an FIR against the bank and has also written to the Haryana government requesting a formal investigation. The State Vigilance and Anti-Corruption Bureau (SV&ACB) has immediately launched an inquiry. Early findings suggest that collusion between the MC and bank staff may have been necessary for this large-scale fraud to occur.
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₹58 Crore Transfer Discrepancy Exposed
The scam came to light when the MC requested the transfer of ₹58 crore from one FD to its account. While the bank statement showed that the funds had been transferred, the actual account did not receive the money. When the MC attempted to transfer other matured FDs into its account, the discrepancy became even more significant.
IDFC ₹590 Cr Scam Context
Earlier in February, a ₹590 crore fraud had been exposed in 12 accounts across eight Haryana government departments through IDFC First Bank. Investigations revealed that the accused manipulated accounts using fake debit memos and unauthorized fund transfers. Fictitious companies such as Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd, and Swastik Desh Project benefited from over ₹250 crore. Six luxury vehicles, including three Toyota Fortuners, two Innovas, and a Mercedes, were seized. Over 100 bank accounts linked to these transactions remain under scrutiny.
Experts say the Panchkula MC-Kotak Mahindra Bank scam highlights weaknesses in oversight in both public and private banking systems. They recommend stringent audits and reconciliation procedures to prevent such incidents in the future.
Officials emphasized that the fraud exposes a lack of monitoring and transparency in government and municipal accounts. The SV&ACB is conducting a detailed investigation and plans to expand the scope of FIRs and formal inquiries as the audit progresses.
Analysts note that such cases are not only a warning for the protection of public funds but also underline the need for robust controls and governance at the municipal and private banking levels.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
