It pertains to irregularities in accounts of multiple Haryana government departments. It surfaced when the panchayat and development department sought to close its account and found a mismatch between its records and the bank balance.Public funds worth nearly Rs 950 crore were siphoned off in a series of frauds involving IDFC First Bank, Kotak Mahindra Bank, and others. Fake fixed deposits (FDs), forged documents and alleged collusion between officials and bank insiders exposed systemic loopholes, sending shockwaves through Haryana and Chandigarh’s financial administration.Four cases are under investigation by multiple agencies, including the Enforcement Directorate, Haryana’s Anti-Corruption Bureau and State Vigilance, and the Chandigarh Police’s Economic Offences Wing. The Haryana government has written to the Central Bureau of Investigation to take over the probe and examine possible collusion of senior officials and other players.IDFC First Bank ₹590-crore fraudIt pertains to irregularities in accounts of multiple Haryana government departments. It surfaced when the panchayat and development department sought to close its account and found a mismatch between its records and the bank balance. Investigators point to unauthorised transactions, manipulation and diversion of funds into private accounts. Hundreds of transactions across numerous accounts are under scrutiny, with indications of collusion between bank staff, government officials and intermediaries. Around 18 government entities are believed to be affected. AU Small Finance Bank came under scrutiny for suspicious transactions but is not directly accused. It was de-empanelled along with IDFC First Bank as a precaution.Kotak Mahindra Bank ₹158-crore fraudThis case pertains to the Panchkula Municipal Corporation. Discrepancies emerged when it sought details of FDs and found mismatch with bank records. Investigators found that two unauthorised accounts were opened using forged signatures and seals, and funds were routed through multiple accounts. Fake confirmations, fabricated FDRs and misleading statements were allegedly used to conceal the fraud.IDFC First Bank ₹116-crore fraudThe case involves about Rs 116.84 crore belonging to Chandigarh Smart City Limited (CSCL) and linked to the IDFC First Bank’s Sector-32 branch. The fraud surfaced during the winding up of CSCL, when funds were to be transferred to the Chandigarh Municipal Corporation. FDRs issued by the bank were found to be fake, with no corresponding deposits. Further checks confirmed forged documents and missing funds.IDFC First Bank ₹83-crore fraudIt involves alleged siphoning of Rs 75–83 crore of the Chandigarh Renewable Energy and Science & Technology (CREST) Promotion Society funds through unauthorised transactions and forged documentation. Shell firms were allegedly used to route funds, some of which were invested in real estate and other assets. These entities also feature in the Rs 590-crore fraud. Fake FDRs worth over Rs 116 crore were allegedly created to mask irregularities.Stay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:chandigarh